Aarons 2007 Annual Report Download - page 46

Report of Independent Registered Public Accounting Firm
Management Report on Internal Control
Over Financial Reporting
Management of Aaron Rents, Inc. (the “Company”) is respon-
sible 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 judg-
ment 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
THE BOARD OF DIRECTORS AND
SHAREHOLDERS OF AARON RENTS, INC.
We have audited the accompanying consolidated balance
sheets of Aaron Rents, Inc. and subsidiaries as of December
31, 2007 and 2006, and the related consolidated statements
of earnings, shareholders’ equity, and cash flows for each of
the three years in the period ended December 31, 2007. Our
audits also included the financial statement schedule listed
in the Index at Item 15(a). These financial statements and
schedule are the responsibility of the Company’s manage-
ment. Our responsibility is to express an opinion on these
financial statements and schedule 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 support-
ing 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 presenta-
tion. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects,
the consolidated financial position of Aaron Rents, Inc. at
December 31, 2007 and 2006, and the consolidated results
of its operations and its cash flows for each of the three
years in the period ended December 31, 2007, in conformity
with U.S. generally accepted accounting principles. Also, in
our opinion, the related financial statement schedule, when
considered in relation to the basic financial statements taken
as a whole, presents fairly in all material respects the infor-
mation set forth therein.
As discussed in Note E, in 2007 the Company adopted
Financial Accounting Standards Board (“FASB”) Interpretation
No. 48, “Accounting for Uncertainty in Income Taxes.” Also,
as discussed in Note A, in 2006 the Company adopted
Statement of Financial Accounting Standards (“FASB”) No.
123 (revised), “Share-Based Payment.”
We also have audited, in accordance with the standards
of the Public Company Accounting Oversight Board (United
States), Aaron Rents, Inc.’s internal control over financial
reporting as of December 31, 2007, based on criteria estab-
lished in Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 28, 2008
expressed an unqualified opinion thereon.
Atlanta, Georgia
February 28, 2008
control 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 report-
ing as of December 31, 2007. 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, 2007, 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, 2007 has been audited by Ernst & Young
LLP, an independent registered public accounting firm,
as stated in their report dated February 28, 2008, which
expresses an unqualified opinion on the effectiveness of
the Company’s internal control over financial reporting as
of December 31, 2007.
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