Entergy 2007 Annual Report Download - page 54

52
Entergy Corporation and Subsidiaries 2007
Management of Entergy Corporation and its subsidiaries has prepared
and is responsible for the nancial statements and related nancial
information included in this document. To meet this responsibility,
management establishes and maintains a system of internal controls
designed to provide reasonable assurance regarding the preparation
and fair presentation of nancial statements in accordance with
generally accepted accounting principles. is system includes
communication through written policies and procedures, an employee
Code of Entegrity, and an organizational structure that provides for
appropriate division of responsibility and training of personnel. is
system is also tested by a comprehensive internal audit program.
Entergy management assesses the eectiveness of Entergy’s internal
control over nancial reporting on an annual basis. In making this
assessment, management uses the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) in
Internal Control - Integrated Framework. Management acknowledges,
however, that all internal control systems, no matter how well designed,
have inherent limitations and can provide only reasonable assurance
with respect to nancial statement preparation and presentation.
Entergy Corporation and its subsidiaries’ independent registered
public accounting rm, Deloitte & Touche LLP, has issued an
attestation report on the eectiveness of Entergy’s internal control
over nancial reporting as of December 31, 2007, which is included
herein on page 53.
In addition, the Audit Committee of the Board of Directors,
composed solely of independent Directors, meets with the independent
auditors, internal auditors, management, and internal accountants
periodically to discuss internal controls, and auditing and nancial
reporting matters. e Audit Committee appoints the independent
auditors annually, seeks shareholder ratication of the appointment,
and reviews with the independent auditors the scope and results of
the audit eort. e Audit Committee also meets periodically with
the independent auditors and the chief internal auditor without
management present, providing free access to the Audit Committee.
Based on management’s assessment of internal controls using the
COSO criteria, management believes that Entergy maintained eective
internal control over nancial reporting as of December 31, 2007.
Management further believes that this assessment, combined with the
policies and procedures noted above, provides reasonable assurance
that Entergy’s nancial statements are fairly and accurately presented
in accordance with generally accepted accounting principles.
J. WAYNE LEONARD LEO P. DENAULT
Chairman and Executive Vice President
Chief Executive Ocer and Chief Financial Ocer
To the Board of Directors and Shareholders
Entergy Corporation and Subsidiaries:
We have audited the accompanying consolidated balance sheets
of Entergy Corporation and Subsidiaries (the “Corporation”) as of
December 31, 2007 and 2006, and the related consolidated statements
of income; of retained earnings, comprehensive income, and paid-in
capital; and of cash ows for each of the three years in the period ended
December 31, 2007. ese nancial statements are the responsibility
of the Corporation’s management. Our responsibility is to express an
opinion on these nancial statements based on our audits.
We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States).
ose standards require that we plan and perform the audit to
obtain reasonable assurance about whether the nancial statements
are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the
nancial statements. An audit also includes assessing the accounting
principles used and signicant estimates made by management, as well
as evaluating the overall nancial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated nancial statements present fairly,
in all material respects, the nancial position of Entergy Corporation
and Subsidiaries as of December 31, 2007 and 2006, and the results
of their operations and their cash ows for each of the three years in
the period ended December 31, 2007, in conformity with accounting
principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
the Corporation’s internal control over nancial 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 and our
report dated February 28, 2008 expressed an unqualied opinion on
the Corporation’s internal control over nancial reporting.
DELOITTE & TOUCHE LLP
New Orleans, Louisiana
February 28, 2008
REPORT OF MANAGEMENT REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM