Nautilus 2005 Annual Report Download - page 40

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Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Nautilus, Inc.
Vancouver, Washington
We have audited the accompanying consolidated balance sheets of Nautilus, Inc. and subsidiaries (the “Company”) as of December 31,
2005 and 2004, and the related consolidated statements of income, stockholders’ equity and comprehensive income, and cash flows for each of
the three years in the period ended December 31, 2005. These financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on the financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about 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 management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Nautilus, Inc. and
subsidiaries as of December 31, 2005 and 2004, and the results of their operations and their cash flows for each of the three years in the period
ended December 31, 2005, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
effectiveness of the Company’s internal control over financial reporting as of December 31, 2005, based on the criteria established in Internal
Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
March 16, 2006 expressed an unqualified opinion on management’s assessment of the effectiveness of the Company’s internal control over
financial reporting and an adverse opinion on the effectiveness of the Company’s internal control over financial reporting because of two
material weaknesses.
DELOITTE & TOUCHE LLP
Portland, Oregon
March 16, 2006
39