Sonic 2007 Annual Report Download - page 43

The Board of Directors and Stockholders of
Sonic Corp.
We have audited Sonic Corp.’s internal control over financial reporting as of August 31, 2007,
based on criteria established in Internal Control—Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (the COSO criteria). Sonic Corp.’s
management is responsible for maintaining effective internal control over financial reporting, and for
its assessment of the effectiveness of internal control over financial reporting included in the
accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility
is to express an opinion on the effectiveness of the company’s internal control over financial reporting
based on our audit.
We conducted our audit 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 effective internal control over financial reporting was
maintained in all material respects. Our audit included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances. We believe that
our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company’s
internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) 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.
Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. 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.
In our opinion, Sonic Corp. maintained, in all material respects, effective internal control over
financial reporting as of August 31, 2007, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the consolidated balance sheets of Sonic Corp. as of August 31, 2007
and 2006, and the related consolidated statements of income, retained earnings, and cash flows for
each of the three years in the period ended August 31, 2007 of Sonic Corp. and our report dated
October 17, 2007 expressed an unqualified opinion thereon.
Oklahoma City, Oklahoma
October 17, 2007
Pg. 41
Sonic Corp. 2007 Annual Report
Report of Independent Registered Public Accounting Firm
on Internal Control Over Financial Reporting
The management of the company is responsible for establishing and maintaining adequate
internal control over financial reporting. The company’s internal control system was designed to
provide reasonable assurance to the company’s management and Board of Directors regarding
the preparation and fair presentation of published financial statements. All internal control
systems, no matter how well designed, have inherent limitations. Therefore, even those systems
determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation.
The company’s management assessed the effectiveness of the company’s internal control
over financial reporting as of August 31, 2007. In making this assessment, it used the criteria set
forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal
Control—Integrated Framework. Based on our assessment, we believe that, as of August 31,
2007, the company’s internal control over financial reporting is effective based on those criteria.
The company’s independent registered public accounting firm has issued the following
attestation report on the company’s internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting