Travelzoo 2005 Annual Report Download - page 53

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
Travelzoo Inc.:
We have audited management's assessment, included in Management's Report on Internal Control over
Financial Reporting appearing under Item 9A, that Travelzoo Inc. (""the Company'') maintained eÅective
internal controls over Ñnancial reporting as of December 31, 2005, based on criteria established in Internal
Control Ì Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). The Company's management is responsible for maintaining eÅective internal control
over Ñnancial reporting and for its assessment of the eÅectiveness of internal control over Ñnancial reporting.
Our responsibility is to express an opinion on management's assessment and an opinion on the eÅectiveness of
the Company's internal control over Ñnancial reporting based on our audit.
We conducted our audit 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 eÅective internal control over Ñnancial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over Ñnancial reporting, evaluating
management's assessment, testing and evaluating the design and operating eÅectiveness of internal control,
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 Ñnancial reporting is a process designed to provide reasonable
assurance regarding the reliability of Ñnancial reporting and the preparation of Ñnancial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal control over
Ñnancial reporting includes those policies and procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reÖect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ñnancial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a material eÅect on the Ñnancial
statements.
Because of its inherent limitations, internal control over Ñnancial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of eÅectiveness 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, management's assessment that Travelzoo Inc. maintained eÅective internal control over
Ñnancial reporting as of December 31, 2005, is fairly stated, in all material respects, based on Internal
Control Ì Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Also, in our opinion, Travelzoo Inc. maintained, in all material respects, eÅective
internal control over Ñnancial reporting as of December 31, 2005, based on criteria established in Internal
Control Ì Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the consolidated balance sheets of Travelzoo Inc. and subsidiaries as of December 31,
2005 and 2004, and the related consolidated statements of operations, stockholders' equity and comprehensive
income, and cash Öows for each of the years in the three-year period ended December 31, 2005, and our report
dated March 15, 2006 expressed an unqualiÑed opinion on those consolidated Ñnancial statements.
/s/ KPMG LLP
Mountain View, California
March 15, 2006
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