Dominion Power 2007 Annual Report Download - page 63

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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
Dominion Resources, Inc.
Richmond, Virginia
We have audited the internal control over financial reporting of
Dominion Resources, Inc. (the “Company”) as of December 31,
2007, based on criteria established in Internal Control—
Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. The Company’s
management is responsibleformaintaining effective internal
control over financial reporting and for its assessment of the effec-
tiveness of internal control over financial reporting, included in
the accompanying Management’s Annual Report on Internal
Control over Financial Reporting. Our responsibility is to express
an opinion on the Company’s internal control over financial
reporting based on our audit.
We conducted our audit 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 effective
internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding
of internal control over financial reporting, assessing the risk that
amaterial weakness exists, testingand evaluating the designand
operating effectiveness of internal control based on the assessed
risk, and performingsuch other procedures as we considered
necessary in the circumstances. We believe that our audit provides
areasonable basis for our opinion.
A company’s internal control over financial reporting is a
process designed by, or under the supervision of, the company’s
principal executive and principal financial officers, or persons
performing similar functions, and effected by the company’s
board of directors, management, and other personnel to provide
reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements forexternal purposes
in accordance with generally accepted accounting principles. A
company’s internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assetsof the company;
(2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accord-
ance with generally accepted accounting principles,and that
receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding
prevention or timelydetection of unauthorized acquisition, use,
or disposition of the company’s assetsthat could have amaterial
effect on the financial statements.
Because of the inherent limitations of internal control over
financial reporting, including the possibility of collusion or
improper management override of controls, material misstate-
ments due to error or fraud maynot be prevented or detected on
atimelybasis. Also, projections of any evaluation of the effective-
ness of the internal control over financial reporting to future peri-
ods are subject to the risk that the controls maybecome
inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures maydeteriorate.
In our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of
December 31, 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 as of and for the year ended
December 31, 2007 of the Company and our report dated
February 26, 2008, expresses an unqualified opinion on those
financial statements and includes an explanatory paragraphrelat-
ing to the adoption of new accounting standards.
Richmond, Virginia
February 26, 2008
Dominion 2007 Annual Report 61