Aflac 2009 Annual Report Download - page 93

Management’s Annual Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over nancial reporting, as such term
is dened in Exchange Act Rules 13a 15(f). Under the supervision and with the participation of our management, including
our principal executive ofcer and principal nancial ofcer, we conducted an evaluation of the effectiveness of our internal
control over nancial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO). Based on our evaluation under this framework,
management has concluded that our internal control over nancial reporting was effective as of December 31, 2009.
KPMG LLP, an independent registered public accounting rm, has issued an attestation report on the effectiveness of
internal control over nancial reporting as of December 31, 2009, which is included herein.
Report of Independent Registered Public Accounting Firm
The shareholders and board of directors of Aac Incorporated:
We have audited the accompanying consolidated balance sheets of Aac Incorporated and subsidiaries (the Company) as
of December 31, 2009 and 2008, and the related consolidated statements of earnings, shareholders’ equity, cash ows,
and comprehensive income for each of the years in the three-year period ended December 31, 2009. These consolidated
nancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
these consolidated nancial 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
nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the nancial statements. An audit also includes assessing the accounting principles used and
signicant estimates made by management, as well as evaluating the overall nancial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated nancial statements referred to above present fairly, in all material respects, the nancial
position of Aac Incorporated and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and
their cash ows for each of the years in the three-year period ended December 31, 2009, in conformity with U.S. generally
accepted accounting principles.
As discussed in Note 1 to the consolidated nancial statements, the Company changed its method of evaluating other-
than-temporary impairments of debt securities due to the adoption of new accounting requirements issued by the Financial
Accounting Standards Board, effective January 1, 2009.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), Aac Incorporated and subsidiaries’ internal control over nancial reporting as of December 31, 2009, based on
criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO), and our report dated February 26, 2010, expressed an unqualied opinion on the
effectiveness of the Company’s internal control over nancial reporting.
Atlanta, Georgia
February 26, 2010
Aflac Annual Report for 2009 89