ADT 2006 Annual Report Download - page 138

records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
Company’s assets, (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 the Company’s receipts and expenditures are being made only in accordance with
authorizations of the Company’s management and directors 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.
Management assessed the effectiveness of our internal control over financial reporting as of
September 29, 2006. In making this assessment, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—
Integrated Framework. Management’s assessment included an evaluation of the design of the Company’s
internal control over financial reporting and testing of the operational effectiveness of its internal
control over financial reporting. Management reviewed the results of its assessment with the Audit
Committee of our Board of Directors. Based on our assessment and those criteria, management
believes that the Company maintained effective internal control over financial reporting as of
September 29, 2006.
Our management’s assessment of the effectiveness of our internal control over financial reporting
as of September 29, 2006 has been audited by Deloitte & Touche LLP, the independent registered
public accounting firm that audited and reported on the consolidated financial statements included in
this Form 10-K, as stated in their report which is included herein.
December 8, 2006
Item 9B. Other Information
None.
76 2006 Financials