Cincinnati Bell 2004 Annual Report Download - page 131

Report of Independent Registered Public Accounting Firm
To the Board of Directors and the
Shareowners of Cincinnati Bell Inc.
We have completed an integrated audit of Cincinnati Bell Inc.’s 2004 consolidated financial statements
and of its internal control over financial reporting as of 2004 and audits of its 2003 and 2002 consolidated
financial statements 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 Cincinnati Bell Inc. and its subsidiaries at December 31, 2004
and 2003, and the results of their operations and their cash flows for each of the three years in the period
ended December 31, 2004 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 1 to the consolidated financial statements, on January 1, 2003, the Company
changed its method of accounting for asset retirement obligations in connection with the adoption of
Statement of Financial Accounting Standards No. 143. In addition, as discussed in Note 4 to the consolidated
financial statements, on January 1, 2002, the Company changed the manner in which it accounts for goodwill
and other intangible assets upon adoption of Statement of Financial Accounting Standards No. 142.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in Management’s Report on Internal Control
Over Financial Reporting appearing under Item 8, that the Company maintained effective internal control over
financial reporting as of December 31, 2004 based on criteria established in Internal Control — Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), is
fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31,
2004, based on criteria established in Internal Control — Integrated Framework issued by the 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 includes obtaining an understanding of internal control over financial reporting,
evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal
control, and performing such other procedures as we consider necessary in the circumstances. We believe that
our audit provides a reasonable basis for our opinions.
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Form 10-K