Dominion Power 2005 Annual Report Download - page 55

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Dominion 2005 53
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of
Dominion Resources, Inc.
We have audited the accompanying consolidated balance sheets of
Dominion Resources, Inc. and subsidiaries (the “Company”) as of
December 31, 2005 and 2004, and the related consolidated state-
ments of income, common shareholders’ equity and comprehen-
sive income, and of cash flows for each of the three years in the
period ended December 31, 2005. These financial statements are
the responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements 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 state-
ments are free of material misstatement. An audit includes examin-
ing, 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 Dominion
Resources, Inc. and subsidiaries as of December 31, 2005 and
2004, and the results of their operations and their cash flows for
each of the three years in the period ended December 31, 2005, in
conformity with accounting principles generally accepted in the
United States of America.
As discussed in Note 3 to the consolidated financial statements,
the Company changed its methods of accounting to adopt new
accounting standards for: conditional asset retirement obligations
in 2005 and asset retirement obligations, contracts involved in
energy trading, derivative contracts not held for trading purposes,
derivative contracts with a price adjustment feature, and the
consolidation of variable interest entities in 2003.
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 December 31, 2005, based on criteria established
in Internal Control
—
Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission and our
report dated March 2, 2006, expressed an unqualified opinion
on management’s assessment of the effectiveness of the Com-
pany’s internal control over financial reporting and an unqualified
opinion on the effectiveness of the Company’s internal control over
financial reporting.
Richmond, Virginia
March 2, 2006