Advance Auto Parts Inc. (NYSE: NYSE:AAP) disclosed an additional material weakness in its internal control over financial reporting, as per its amended annual filing with the Securities and Exchange Commission. This weakness pertains to ineffective control activities, including account reconciliations, as of December 30, 2023.
The company, a leading automotive parts provider, revealed that subsequent to its original filing on March 12, 2024, management identified the deficiency which led to the restatement of its report on internal control over financial reporting.
Despite the weakness, the company has evaluated the impact and concluded that the errors were not material to its previously issued financial statements for the annual and interim periods up to December 30, 2023. Therefore, those financial statements are not being restated and can still be relied upon.
The amendment to the original filing includes a restated report from Deloitte & Touche LLP, the independent registered public accounting firm, on the company's internal control over financial reporting. Moreover, the firm's unqualified opinion on Advance Auto Parts' consolidated financial statements has been updated to reflect this restatement.
Advance Auto Parts has also provided updated certifications by its CEO and CFO in accordance with the amendment. The company emphasized that this amendment does not change any other disclosures in the original filing and does not account for events occurring after the original filing date. Investors are advised to consider this amendment in conjunction with the company's subsequent SEC filings for a comprehensive understanding of the company's financial position.
This announcement comes as a crucial update for stakeholders, underlining the importance of robust financial controls and transparency in corporate governance. Advance Auto Parts' proactive disclosure and correction of its internal control processes reflect its commitment to maintaining the integrity of its financial reporting.
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