Aarons 2010 Annual Report Download - page 46

In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated financial
position of Aaron’s, Inc. and subsidiaries at December 31, 2010
and 2009, and the consolidated results of their operations and
their cash flows for each of the three years in the period ended
December 31, 2010, in conformity with U.S. generally accepted
accounting principles.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
Aaron’s, Inc. and subsidiaries’ internal control over financial
reporting as of December 31, 2010, 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 25, 2011 expressed an unqualified
opinion thereon.
Atlanta, Georgia
February 25, 2011
Report of Independent Registered Public Accounting Firm
on Financial Statements
Management Report on Internal Control
Over Financial Reporting
Management of Aaron’s, Inc. and subsidiaries (the “Company”)
is responsible for establishing and maintaining adequate internal
control over financial reporting as defined in Rules 13a-15(f) and
15d-15(f) under the Securities Exchange Act of 1934, as amended.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
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. Internal control
over financial reporting cannot provide absolute assurance of
achieving financial reporting objectives because of its inherent
limitations. Internal control over financial reporting is a process
that involves human diligence and compliance and is subject to
lapses in judgment and breakdowns resulting from human failures.
Internal control over financial reporting also can be circumvented
by collusion or improper management override. Because of such
limitations, there is a risk that material misstatements may not
be prevented or detected on a timely basis by internal control
The Board of Directors of Aaron’s, Inc. and subsidiaries
We have audited the accompanying consolidated balance sheets of
Aaron’s, Inc. and subsidiaries as of December 31, 2010 and 2009,
and the related consolidated statements of earnings, shareholders’
equity, and cash flows for each of the three years in the period ended
December 31, 2010. These financial statements are the responsibility
of the Company’s management. 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).
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.
over financial reporting. However, these inherent limitations are
known features of the financial reporting process. Therefore, it is
possible to design into the process safeguards to reduce, though not
eliminate, the risk.
The Company’s management assessed the effectiveness of
the Company’s internal control over financial reporting as of
December 31, 2010. In making this assessment, the Company’s
management used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO)
in Internal Control-Integrated Framework.
Based on its assessment, management believes that, as of
December 31, 2010, the Company’s internal control over financial
reporting was effective based on those criteria.
The Company’s internal control over financial reporting as of
December 31, 2010 has been audited by Ernst & Young LLP, an
independent registered public accounting firm, as stated in their
report dated February 25, 2011, which expresses an unqualified
opinion on the effectiveness of the Company’s internal control
over financial reporting as of December 31, 2010.
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