ADT 2006 Annual Report Download - page 151

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Tyco International Ltd.
We have audited the accompanying consolidated balance sheets of Tyco International Ltd. and
subsidiaries (the ‘‘Company’’) as of September 29, 2006 and September 30, 2005, and the related
consolidated statements of income, shareholders’ equity, and cash flows for each of the three years in
the period ended September 29, 2006. Our audits also included the financial statement schedule for the
years ended September 29, 2006, September 30, 2005 and 2004, listed in the Index at Item 15a. These
financial statements and financial statement schedule are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the financial statements and financial
statement schedule based on our audits.
We conducted our audits 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 the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of September 29, 2006 and September 30, 2005, and the results of
its operations and its cash flows for each of the three years in the period ended September 29, 2006, in
conformity with accounting principles generally accepted in the United States of America. Also, in our
opinion, such financial statement schedule, when considered in relation to the basic consolidated
financial statements taken as a whole, presents fairly, in all material respects, the information set forth
therein.
As discussed in Notes 1 and 9 to the consolidated financial statements, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 123R, Share—Based Payment, on October 1,
2005 and Financial Accounting Standards Board (‘‘FASB’’) Interpretation No. 47, Accounting for
Conditional Asset Retirement Obligations—an interpretation of FASB Statement No. 143, during the fourth
quarter of 2006.
As discussed in Notes 9 and 19 to the consolidated financial statements, in 2005, the Company
changed the measurement date of its pension and post retirement plans from September 30 to
August 31.
As discussed in Note 1, the accompanying 2005 and 2004 consolidated financial statements have
been restated.
We have also audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the effectiveness of the Company’s internal control over financial
reporting as of September 29, 2006, based on the criteria established in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our
report dated December 8, 2006 expressed an unqualified opinion on management’s assessment of the
effectiveness of the Company’s internal control over financial reporting and an unqualified opinion on
the effectiveness of the Company’s internal control over financial reporting.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
New York, New York
December 8, 2006
2006 Financials 89