NetFlix 2005 Annual Report Download - page 62

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
Netflix, Inc.:
We have audited the accompanying consolidated balance sheets of Netflix, Inc. and subsidiary (the
Company) as of December 31, 2004 and 2005, and the related consolidated statements of income, stockholders’
equity and comprehensive income, and cash flows for each of the years in the three-year period ended December
31, 2005. These consolidated financial statements are the responsibility of the management of Netflix, Inc. Our
responsibility is to express an opinion on these consolidated 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 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, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of Netflix, Inc. and subsidiary as of December 31, 2004 and 2005, and the results of their
operations and their cash flows for each of the years in the three-year period ended December 31, 2005, in
conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the effectiveness of Netflix, Inc.’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 (COSO), and our report dated March 14, 2006 expressed
an unqualified opinion on management’s assessment of, and an adverse opinion on the effective operation of,
internal control over financial reporting.
/s/ KPMG LLP
Mountain View, California
March 14, 2006
F-2