Dell 2006 Annual Report Download - page 61

Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Dell Inc.:
We have completed integrated audits of Dell Inc.'s consolidated financial statements and of its internal control over financial
reporting as of February 2, 2007, in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Our opinions, based on our audits, are presented below.
Consolidated financial statements and financial statement schedule
In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects,
the financial position of Dell Inc. and its subsidiaries (the "Company") at February 2, 2007 and February 3, 2006, and the
results of their operations and their cash flows for each of the three years in the period ended February 2, 2007 in conformity
with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial
statement schedule listed in the accompanying index presents fairly, in all material respects, the information set forth therein
when read in conjunction with the related consolidated financial statements. These financial statements and financial
statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on
these financial statements and financial statement schedule based on our audits. We conducted our audits of these
statements 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 of financial statements includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
As discussed in Note 2 to the consolidated financial statements, the Company has restated its fiscal 2006 and 2005
consolidated financial statements.
As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for
share-based compensation in fiscal 2007.
Internal control over financial reporting
Also, we have audited management's assessment, included in Management's Report on Internal Control Over Financial
Reporting appearing under Item 9A, that the Company did not maintain effective internal control over financial reporting as of
February 2, 2007, because the Company did not maintain an effective control environment due to the failure to maintain a
tone and control consciousness that consistently emphasized strict adherence to accounting principles generally accepted in
the United States of America and the failure to maintain a sufficient complement of personnel with an appropriate level of
accounting knowledge, experience and training, and because the Company did not maintain effective controls over the
period-end reporting process, including journal entries, account reconciliations, and the accounting for accrued liabilities,
reserves and operating expenses, based on criteria established in Internal Control — Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible
for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control
over financial reporting. Our responsibility is to express opinions on management's assessment and on the effectiveness of
the Company's internal control over financial reporting based on our audit.
We conducted our audit of internal control over financial reporting 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. An audit of internal control over financial reporting
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