Aarons 2008 Annual Report Download - page 42

Report of Independent Registered Public Accounting Firm
on Financial Statements
Management Report on Internal Control
Over Financial Reporting
Management of Aaron Rents, Inc. (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 compli-
ance with the policies or procedures may deteriorate. Internal
control over financial reporting cannot provide absolute assur-
ance 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 over-
ride. Because of such limitations, there is a risk that material
misstatements may not be prevented or detected on a timely
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, 2008
and 2007, and the related consolidated statements of earnings,
shareholders’ equity, and cash flows for each of the three years in
the period ended December 31, 2008. These financial statements
are the responsibility of the Company’s management. Our respon-
sibility 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 sig-
nificant 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.
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, 2008
and 2007, and the consolidated results of its operations and
its cash flows for each of the three years in the period ended
December 31, 2008, in conformity with U.S. generally accepted
accounting principles.
As discussed in Note E, in 2007 the Company adopted
Financial Accounting Standards Board (“FASB”) Interpretation
No. 48, “Accounting for Uncertainty in Income Taxes.”
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, 2008, 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 27, 2009 expressed an unqualified opinion
thereon.
Atlanta, Georgia
February 27, 2009
basis by internal 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 reporting as of
December 31, 2008. 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, 2008, the Company’s internal control over finan-
cial reporting was effective based on those criteria.
The Company’s internal control over financial reporting as
of December 31, 2008 has been audited by Ernst & Young LLP,
an independent registered public accounting firm, as stated
in their report dated February 27, 2009, which expresses an
unqualified opinion on the effectiveness of the Company’s inter-
nal control over financial reporting as of December 31, 2008.
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