Aarons 2011 Annual Report Download - page 45

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, 2011
and 2010, and the consolidated results of their operations and
their cash flows for each of the three years in the period ended
December 31, 2011, 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, 2011, 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 29, 2012 expressed an unqualified opinion
thereon.
Atlanta, Georgia
February 29, 2012
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON FINANCIAL STATEMENTS
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 finan-
cial 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 over financial report-
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, 2011 and 2010,
and the related consolidated statements of earnings, shareholders’
equity, and cash flows for each of the three years in the period ended
December 31, 2011. 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.
ing. 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, 2011. 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, 2011, 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, 2011 has been audited by Ernst & Young LLP, an
independent registered public accounting firm, as stated in their
report dated February 29, 2012, which expresses an unqualified
opinion on the effectiveness of the Company’s internal control over
financial reporting as of December 31, 2011.
MANAGEMENT’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING
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