AT&T Wireless 2015 Annual Report Download - page 82

80 | AT&T INC.
Report of Management
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles.
The integrity and objectivity of the data in these financial statements, including estimates and judgments relating to matters
not concluded by year end, are the responsibility of management, as is all other information included in the Annual Report,
unless otherwise indicated.
The financial statements of AT&T Inc. (AT&T) have been audited by Ernst & Young LLP, Independent Registered Public
Accounting Firm. Management has made available to Ernst & Young LLP all of AT&T’s financial records and related data, as
well as the minutes of stockholders’ and directors’ meetings. Furthermore, management believes that all representations made
to Ernst & Young LLP during its audit were valid and appropriate.
Management maintains disclosure controls and procedures that are designed to ensure that information required to be
disclosed by AT&T is recorded, processed, summarized, accumulated and communicated to its management, including its
principal executive and principal financial officers, to allow timely decisions regarding required disclosure, and reported within
the time periods specified by the Securities and Exchange Commission’s rules and forms.
Management also seeks to ensure the objectivity and integrity of its financial data by the careful selection of its managers,
by organizational arrangements that provide an appropriate division of responsibility and by communication programs aimed
at ensuring that its policies, standards and managerial authorities are understood throughout the organization.
The Audit Committee of the Board of Directors meets periodically with management, the internal auditors and the
independent auditors to review the manner in which they are performing their respective responsibilities and to discuss
auditing, internal accounting controls and financial reporting matters. Both the internal auditors and the independent auditors
periodically meet alone with the Audit Committee and have access to the Audit Committee at any time.
Assessment of Internal Control
The management of AT&T is responsible for establishing and maintaining adequate internal control over financial reporting,
as defined in Rule 13a-15(f) or 15d-15(f) under the Securities Exchange Act of 1934. AT&T’s internal control system was
designed to provide reasonable assurance to the company’s management and Board of Directors regarding the preparation
and fair presentation of published financial statements.
AT&T management assessed the effectiveness of the company’s internal control over financial reporting as of December 31,
2015. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control – Integrated Framework (2013 framework). We have excluded from the scope of
our assessment of internal control over financial reporting the operations and related assets of DIRECTV and Mexico wireless
operations (Mexico), which we acquired in 2015. At December 31, 2015 and for the period from acquisition through December
31, 2015, total assets and operating revenues subject to DIRECTV’s internal control over financial reporting represented
20.3% and 9.9% of AT&T’s consolidated total assets and total revenues as of and for the year ended December 31, 2015.
At December 31, 2015 and for the period from acquisition through December 31, 2015, total assets and operating revenues
subject to Mexico’s internal control over financial reporting represented 1.6% and 1.3% of AT&T’s consolidated total assets
and total revenues as of and for the year ended December 31, 2015. Based on its assessment, AT&T management believes
that, as of December 31, 2015, the company’s internal control over financial reporting is effective based on those criteria.
Ernst & Young LLP, the independent registered public accounting firm that audited the financial statements included in this
Annual Report, has issued an attestation report on the company’s internal control over financial reporting.
Randall Stephenson John J. Stephens
Chairman of the Board, Senior Executive Vice President and
Chief Executive Officer and President Chief Financial Officer