ADT 2007 Annual Report Download - page 188

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 28, 2007 and September 29, 2006, and the related
consolidated statements of operations, shareholders’ equity, and cash flows for each of the three years
in the period ended September 28, 2007. Our audits also included the financial statement schedule
listed in the Index at Item 15. 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 Tyco International Ltd. and subsidiaries as of September 28, 2007 and
September 29, 2006, and the results of their operations and their cash flows for each of the three years
in the period ended September 28, 2007, 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 Note 1 to the consolidated financial statements: i) the Company changed the
depreciation method and estimated useful life used to account for pooled subscriber system assets and
related deferred revenue from the straight-line method with lives ranging from 10 to 14 years to an
accelerated method with lives up to 15 years effective as of the beginning of the fiscal third quarter of
2007, and ii) the Company adopted the recognition and related disclosure provisions of Statement of
Financial Accounting Standards No. 158, Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R) effective
September 28, 2007.
As discussed in Note 7 to the consolidated financial statements: i) the Company adopted Financial
Accounting Standards Board Interpretation No. 47, Accounting for Conditional Asset Retirement
Obligations—an interpretation of FASB Statement No. 143 effective September 29, 2006, and ii) the
Company changed the measurement date of its pension and post retirement plans from September 30
to August 31 in fiscal year 2005.
As discussed in Note 19 to the consolidated financial statements, the Company adopted Statement
of Financial Accounting Standards No. 123(R), Share-Based Payment, effective October 1, 2005.
We have also audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the Company’s internal control over financial reporting as of
September 28, 2007, 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
November 27, 2007 expressed an adverse opinion on the Company’s internal control over financial
reporting because of a material weakness.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
New York, New York
November 27, 2007
96 2007 Financials