Napa Auto Parts 2007 Annual Report Download - page 27

Report฀of฀Independent฀Registered฀Public฀Accounting฀Firm฀on฀Internal฀Control฀over฀Financial฀Reporting
e Board of Directors and Shareholders of Genuine Parts Company
We have audited Genuine Parts Company’s internal control over financial
reporting as of December 31, 2007, based on criteria established in
Internal Control—Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (the COSO
criteria). Genuine Parts Company’s management is responsible for
maintaining effective internal control over financial reporting, and for its
assessment of the effectiveness of internal control over financial reporting
included in the accompanying Report of Management. Our respon-
sibility is to express an opinion on the Company’s internal control over
financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). ose standards
require that we plan and perform the audit to obtain reasonable assurance
about whether effective internal control over financial reporting was
maintained in all material respects. Our audit included obtaining an un-
derstanding of internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for
our opinion.
A company’s internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial re-
porting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s
internal control over financial reporting includes those policies and pro-
cedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accor-
dance with authorizations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely de-
tection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial report-
ing may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate.
In our opinion, Genuine Parts Company maintained, in all material
respects, effective internal control over financial reporting as of December
31, 2007, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the consolidated
balance sheets of Genuine Parts Company as of December 31, 2007 and
2006, and the related consolidated statements of income, shareholders’
equity, and cash flows for each of the three years in the period ended
December 31, 2007 of Genuine Parts Company and our report dated
February 26, 2008 expressed an unqualified opinion thereon.
Atlanta, Georgia
February 26, 2008
Report฀of฀Independent฀Registered฀Public฀Accounting฀Firm฀on฀the฀Financial฀Statements
e Board of Directors and Shareholders of Genuine Parts Company
We have audited the accompanying consolidated balance sheets of
Genuine Parts Company as of December 31, 2007 and 2006, and the
related consolidated statements of income, shareholders’ equity, and cash
flows for each of the three years in the period ended December 31, 2007.
ese financial statements are the responsibility of the Company’s man-
agement. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). ose standards
require that we plan and perform the audit to obtain reasonable assurance
whether the financial statements are free of material misstatement An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by manage-
ment, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Genuine
Parts Company at December 31, 2007 and 2006, and the consolidated
results of its operations and its cash flows for each of the three years in
the period ended December 31, 2007, in conformity with U.S. generally
accepted accounting principles.
As discussed in Note 7, effective December 31, 2006, the Company ad-
opted Statement of Financial Accounting Standards No. 158, Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), Genuine Parts
Company’s internal control over financial reporting as of December
31, 2007, based on criteria established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission and our report dated February 26, 2008 expressed
an unqualified opinion thereon.
Atlanta, Georgia
February 26, 2008
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