Hertz 2015 Annual Report Download - page 82

Table of Contents
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To the Board of Directors
and Stockholders of
Hertz Global Holdings, Inc.
In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)1present fairly, in all material respects, the
financial position of Hertz Global Holdings, Inc. and its subsidiariesat December 31, 2015 and December 31, 2014, and the results of their
operations and their cash flows for each of the three years in the period ended December 31, 2015in conformity with accounting principles
generally accepted in the United States of America. In addition, in our opinion, the financial statement schedules listed in the index appearing
under Item 15(a)2presentfairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated
financial statements. Also in our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting
as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) because material weaknessesin internal control over financial reporting existed as of that
date. The material weaknesses related to 1) the control environment, due to material weaknesses related to a) an insufficient complement of
personnel with an appropriate level of knowledge, experience and training commensurate with the Company’s financial reporting requirements, and
b) insufficient training of field personnel utilizing the Oracle ERP system implemented in 2013 for the processing of non-fleet procurement; 2) risk
assessment, as the Company did not effectively design controls in response to the risks of material misstatement; and 3) monitoring controls, as
the Company did not maintain an internal audit function sufficient to monitor control activities. The control environment material weaknesses
contributed to additional material weaknesses as the Company did not design and maintain effective controls over a) certain accounting estimates,
including the effective review of the models, assumptions, and data used in developing estimates or changes made to assumptions and data; and
b) the review, approval, and documentation of manual journal entries. The risk assessment material weakness contributed to an additional material
weakness as the Company did not design effective controls over certain business processes including their period-end financial reporting
processes, including controls over the preparation, analysis, and review of significant account reconciliations and closing adjustments required to
assess the appropriateness of certain account balances at period end.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. The
material weaknesses referred to above are described in Management’s Report on Internal Control over Financial Reporting appearing under Item
9A. We considered these material weaknesses in determining the nature, timing, and extent of audit tests applied in our audit of the 2015
consolidated financial statements and our opinion regarding the effectiveness of the Company’s internal control over financial reporting does not
affect our opinion on those consolidated financial statements. The Company's management is responsible for these financial statements and
financial statement schedules, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting included in management's report referred to above. Our responsibility is to express opinions on these
financial statements, on the financial statement schedules, and on the Company's internal control over financial reporting based on our integrated
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 audits to obtain reasonable assurance about whether the financial statements are free of material
misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial
statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit
of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a
reasonable basis for our opinions.
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