Brands is in the process of integrating the operations and processes of AAG as a result of its acquisition on May 21, 2015. Spectrum Brands will continue to evaluate and monitor these processes as Spectrum Brands integrates AAG into its control environment.
Limitations on the Effectiveness of Controls
The Company’s management, including our Principal Executive Officer and Principal Financial Officer, does not expect that the Company’s disclosure controls and procedures or the Company’s internal controls over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.
