ADT 2007 Annual Report Download - page 190

prevented or detected, errors from occurring that could have been material, either individually
or in the aggregate.
This material weakness was considered in determining the nature, timing and extent of audit tests
applied in our audit of the consolidated financial statements and financial statement schedule as of and
for the fiscal year ended September 28, 2007, of the Company and this report does not affect our
report on such financial statements and financial statement schedule.
In our opinion because of the effect of the material weakness described above on the achievement
of the objectives of the control criteria, the Company has not maintained effective 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.
We have also audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the consolidated financial statements and financial statement schedule
as of and for the year ended September 28, 2007 of the Company and our report dated November 27,
2007 expressed an unqualified opinion on those consolidated financial statements and financial
statement schedule and included an explanatory paragraph noting that 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.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
New York, New York
November 27, 2007
98 2007 Financials