El Pollo Loco 2016 Annual Report Download - page 84

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOU NTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Wemaintaindisclosurecontrolsandprocedures(asdefinedinExchangeActRule13a-15(e))designedtoensurethatinformationrequiredtobedisclosedin
ExchangeActreportsisrecorded,processed,summarized,andreportedwithintherequiredtimeperiods,andthatsuchinformationisaccumulatedand
communicatedtoourmanagement,including,asappropriate,toourChiefExecutiveOfficerandChiefFinancialOfficer,soastopermittimelydecisionsregarding
requireddisclosures.
Withthesupervisionandparticipationofmanagement,includingourChiefExecutiveOfficerandChiefFinancialOfficer,weevaluatedtheeffectivenessofthe
designandoperationofourdisclosurecontrolsandprocedures,andourChiefExecutiveOfficerandChiefFinancialOfficerconcludedthatthedesignand
operationofourdisclosurecontrolsandprocedureswereeffectiveasoftheendoftheperiodcoveredbythisannualreport.
Thedesignofanysystemofcontrolisbasedonassumptionsaboutthelikelihoodoffutureevents.Therecanbenoassurancethatanydesignwillsucceedin
achievingitsstatedobjectivesinallcases,orthatcompliancewithpoliciesorprocedureswillremainsteady.Becauseoftheirinherentlimitations,disclosure
controlsandproceduresmaynotpreventordetectallmisstatements.Accordingly,eveneffectivedisclosurecontrolsandprocedurescanonlyprovidereasonable
assuranceofachievingtheircontrolobjectives.
Management Report on Internal Control over Financial Reporting
Ourmanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting.AsdefinedinExchangeActRule13a-15(f),
internalcontroloverfinancialreportingisaprocessdesignedby,orunderthesupervisionof,ourprincipalexecutiveofficerandprincipalfinancialofficerand
effectedbyourBoardofDirectors,managementandotherpersonnel,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthe
preparationoffinancialstatementsforexternalpurposesinaccordancewithGAAPandincludesthosepoliciesandproceduresthat(i)pertaintothemaintenanceof
recordsthatinreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsoftheCompany;(ii)providereasonableassurancethat
transactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithGAAP,andthatreceiptsandexpendituresoftheCompany
arebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsoftheCompany;and(iii)providereasonableassuranceregardingprevention
ortimelydetectionofunauthorizedacquisition,useordispositionoftheCompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.Thedesign
ofanysystemofcontrolisbaseduponcertainassumptionsaboutthelikelihoodoffutureevents,andtherecanbenoassurancethatanydesignwillsucceedin
achievingitsstatedobjectivesunderallfutureevents,nomatterhowremote,orthatthedegreeofcompliancewiththepoliciesorproceduresmaynotdeteriorate.
Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Accordingly,eveneffectiveinternalcontrol
overfinancialreportingcanonlyprovidereasonableassuranceofachievingtheircontrolobjectives.Also,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.
Underthesupervisionandwiththeparticipationofourmanagement,includingourchiefexecutiveofficerandchieffinancialofficer,wecarriedoutanevaluation
oftheeffectivenessofourinternalcontroloverfinancialreportingasofDecember30,2015basedonthecriteriain“InternalControl—IntegratedFramework”
(2013Framework)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(“COSO”).Basedonthisevaluation,ourmanagement
concludedthatourinternalcontroloverfinancialreportingwaseffectiveasofDecember30,2015.
Further,ourindependentregisteredpublicaccountingfirmwillnotberequiredtoformallyattesttotheeffectivenessofourinternalcontroloverfinancialreporting
aslongaswearean“emerginggrowthcompany”pursuanttotheprovisionsoftheJOBSAct.
Changes in Internal Control over Financial Reporting
Nochangeoccurredinourinternalcontroloverfinancialreportinginthemostrecentquarterthatmateriallyaffected,orisreasonablylikelytomateriallyaffect,
ourinternalcontroloverfinancialreporting.
ITEM 9B. OTHER INFORMATION
None.
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