Virgin Media 2006 Annual Report Download - page 79

permit preparation of financial statements in accordance 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 timely detection of unauthorized acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
As indicated in the accompanying “Management’s Annual Report on Internal Control Over Financial Reporting”, management’s
assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of
Virgin Mobile Holdings (UK) Limited and subsidiaries (“Virgin Mobile), which are included in the 2006 consolidated financial
statements of Virgin Media Inc. and constituted £1,339.3 million and £942.0 million of total and net assets, respectively, as of
December 31, 2006 and £291.8 million and £17.5 million of revenues and net loss, respectively, for the year then ended. Our audit of
internal control over financial reporting of Virgin Media Inc. also did not include an evaluation of the internal control over financial
reporting of Virgin Mobile.
In our opinion, management’s assessment that Virgin Media Inc. maintained effective internal control over financial reporting as
of December 31, 2006, is fairly stated, in all material respects, based on the COSO criteria. Also, in our opinion, Virgin Media Inc.
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2006, based on the COSO
criteria.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
2006 consolidated financial statements of Virgin Media Inc. and our report dated March 1, 2007 expressed an unqualified opinion
thereon.
/s/ Ernst & Young LLP
London, England
March 1, 2007
(d) Changes in Internal Control Over Financial Reporting
On March 3, 2006, we completed the reverse acquisition of Telewest and on July 4, 2006, we completed the acquisition of Virgin
Mobile. As a consequence of our integration of these acquisitions, we have made and expect to make further material changes to our
internal control over financial reporting. Other than as stated above, there were no changes in our internal control over financial
reporting (as such term is defined in Rules 13a−15(f) and 15d−15(f) under the Exchange Act) during the fourth fiscal quarter that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
None.
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007