Aarons 2012 Annual Report Download - page 52

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42
Management Report on Internal Control over Financial Reporting
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 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 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 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, 2012. 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, 2012, 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, 2012 has been audited by Ernst & Young
LLP, an independent registered public accounting firm, as stated in their report dated February 22, 2013, which
expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2012.