Sally Beauty Supply 2006 Annual Report Download - page 90

Table of Contents
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Controls Evaluation and Related CEO and CFO Certifications. Our management, with the participation of our principal executive
officer (“CEO”) and principal financial officer (“CFO”), conducted an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures as of the end of the period covered by this report. The controls evaluation was conducted by
our Disclosure Committee, comprised of senior representatives from our finance, accounting, internal audit, and legal departments
under the supervision of our CEO and CFO.
Certifications of our CEO and our CFO, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934,
as amended (“Exchange Act”), are attached as exhibits to this report. This “Controls and Procedures” section includes the information
concerning the controls evaluation referred to in the certifications, and it should be read in conjunction with the certifications for a
more complete understanding of the topics presented.
Limitations on the Effectiveness of Controls. We do not expect that our disclosure controls and procedures will prevent all errors and
all fraud. A system of controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute,
assurance that the objectives of the system are met. Because of the limitations in all such systems, no evaluation can provide absolute
assurance that all control issues and instances of fraud, if any, within the Company have been detected. Furthermore, the design of any
system of controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no
assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how unlikely.
Because of these inherent limitations in a cost-effective system of controls and procedures, misstatements or omissions due to error or
fraud may occur and not be detected.
Scope of the Controls Evaluation. The evaluation of our disclosure controls and procedures included a review of their objectives and
design, the Company’ s implementation of the controls and procedures and the effect of the controls and procedures on the information
generated for use in this report. In the course of the evaluation, we sought to identify whether we had any data errors, control problems
or acts of fraud and to confirm that appropriate corrective action, including process improvements, was being undertaken if needed.
This type of evaluation is performed on a quarterly basis so that conclusions concerning the effectiveness of our disclosure controls
and procedures can be reported in our quarterly reports on Form 10-Q and our annual reports on Form 10-K. Many of the components
of our disclosure controls and procedures are also evaluated by our internal audit department, our legal department and by personnel in
our finance organization. The overall goals of these various evaluation activities are to monitor our disclosure controls and procedures
on an ongoing basis, and to maintain them as dynamic systems that change as conditions warrant.
Conclusions regarding Disclosure Controls. Based on the required evaluation of our disclosure controls and procedures, our CEO
and CFO have concluded that, as of September 30, 2006, we maintain disclosure controls and procedures that are effective in
providing reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the SEC’ s rules and forms, and that such
information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely
decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting. During our last fiscal quarter, there have been no changes in our internal
control over financial reporting identified in connection with the evaluation described above that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
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