Clearwire 2009 Annual Report Download - page 85

REPORT OF INDEPENDENT REGI
S
TERED PUBLIC ACCOUNTING FIR
M
To the Board of Directors and Stockholders of Clearwire Corporation
Ki
r
kl
an
d
,Was
hi
ngto
n
We have audited Clearwire Corporation and subsidiaries (the “Company”) internal control over financial
r
eport
i
ng as o
f
Decem
b
er 31, 2009,
b
ase
d
on cr
i
ter
i
a esta
bli
s
h
e
di
nInterna
l
Contro
l
— Inte
g
rate
d
Framewor
k
i
ssue
db
yt
h
e Comm
i
ttee o
f
Sponsor
i
ng Organ
i
zat
i
ons o
f
t
h
e Trea
d
way Comm
i
ss
i
on. T
h
e Company’s managemen
t
i
s respons
ibl
e
f
or ma
i
nta
i
n
i
ng e
ff
ect
i
ve
i
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
ng an
df
or
i
ts assessment o
f
t
he
e
ffectiveness of internal control over financial reportin
g
, included in the accompan
y
in
g
Mana
g
ement’s Report on
Internal Control over Financial Reportin
g
. Our responsibilit
y
is to express an opinion on the Compan
y
’s internal
c
ontrol over financial reportin
g
based on our audit.
We con
d
ucte
d
our au
di
t
i
n accor
d
ance w
i
t
h
t
h
e stan
d
ar
d
so
f
t
h
ePu
bli
c Compan
y
Account
i
n
g
Overs
igh
t Boar
d
(
United States). Those standards re
q
uire that we
p
lan and
p
erform the audit to obtain reasonable assurance about
w
hether effective internal control over financial reportin
g
was maintained in all material respects. Our audi
t
i
ncluded obtainin
g
an understandin
g
of internal control over financial reportin
g
, assessin
g
the risk that a material
w
eakness exists, testing and evaluating the design and operating effectiveness of internal control based on that risk,
an
d
per
f
orm
i
ng suc
h
ot
h
er proce
d
ures as we cons
id
ere
d
necessary
i
nt
h
ec
i
rcumstances. We
b
e
li
eve t
h
at our au
di
t
p
rov
id
es a reasona
bl
e
b
as
i
s
f
or our op
i
n
i
on
.
A company’s internal control over financial reporting is a process designed by, or under the supervision of, th
e
c
ompany’s principal executive and principal financial officers, or persons performing similar functions, an
d
eff
ecte
db
yt
h
e company’s
b
oar
d
o
fdi
rectors, management, an
d
ot
h
er personne
l
to prov
id
e reasona
bl
e assurance
r
e
g
ar
di
n
g
t
h
ere
li
a
bili
t
y
o
ffi
nanc
i
a
l
report
i
n
g
an
d
t
h
e preparat
i
on o
ffi
nanc
i
a
l
statements
f
or externa
l
purposes
i
n
accor
d
ance w
i
t
hg
enera
lly
accepte
d
account
i
n
g
pr
i
nc
i
p
l
es. A compan
y
’s
i
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
n
g
i
nc
l
u
d
es t
h
ose
p
o
li
c
i
es an
dp
roce
d
ures t
h
at (1)
p
erta
i
ntot
h
ema
i
ntenance o
f
recor
d
st
h
at,
i
n reasona
bl
e
d
eta
il
,
accuratel
y
and fairl
y
reflect the transactions and dispositions of the assets of the compan
y
; (2) provide reasonabl
e
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordanc
e
w
ith accounting principles generally accepted in the United States, and that receipts and expenditures of th
e
c
ompany are
b
e
i
ng ma
d
eon
l
y
i
n accor
d
ance w
i
t
h
aut
h
or
i
zat
i
ons o
f
management an
ddi
rectors o
f
t
h
e company; an
d
(
3) prov
id
e reasona
bl
e assurance regar
di
ng prevent
i
on or t
i
me
l
y
d
etect
i
on o
f
unaut
h
or
i
ze
d
acqu
i
s
i
t
i
on, use, o
r
di
spos
i
t
i
on o
f
t
h
e compan
y
’s assets t
h
at cou
ld h
ave a mater
i
a
l
e
ff
ect on t
h
e
fi
nanc
i
a
l
statements.
B
ecause o
f
t
h
e
i
n
h
erent
li
m
i
tat
i
ons o
fi
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
ng,
i
nc
l
u
di
ng t
h
e poss
ibili
ty o
f
c
o
ll
us
i
on or
i
mproper management overr
id
eo
f
contro
l
s, mater
i
a
l
m
i
sstatements
d
ue to error or
f
rau
d
may not
b
e
p
revente
d
or
d
etecte
d
on a t
i
me
ly b
as
i
s. A
l
so, pro
j
ect
i
ons o
f
an
y
eva
l
uat
i
on o
f
t
h
ee
ff
ect
i
veness o
f
t
h
e
i
nterna
l
c
ontro
l
over
fi
nanc
i
a
l
report
i
n
g
to
f
uture per
i
o
d
s are su
bj
ect to t
h
er
i
s
k
t
h
at t
h
e contro
l
sma
yb
ecome
i
na
d
equate
b
ecause of chan
g
es in conditions, or that the de
g
ree of compliance with the policies or procedures ma
y
deteriorate.
A mater
i
a
l
wea
k
ness
i
sa
d
e
fi
c
i
ency, or a com
bi
nat
i
on o
fd
e
fi
c
i
enc
i
es,
i
n
i
nterna
l
contro
l
over
fi
nanc
i
a
l
r
eport
i
n
g
, suc
h
t
h
at t
h
ere
i
s a reasona
bl
e poss
ibili
t
y
t
h
at a mater
i
a
l
m
i
sstatement o
f
t
h
e compan
y
’s annua
l
or
i
nter
i
m
financial statements will not be prevented or detected on a timel
y
basis. The followin
g
material weakness has been
i
dentified and included in mana
g
ement’s assessment: the Compan
y
did not have adequatel
y
desi
g
ned procedures to
p
rovide for the timel
y
updatin
g
and maintainin
g
of accountin
g
records for the network infrastructure equipment.
This material weakness was considered in determining the nature, timing, and extent of audit tests applied in ou
r
audit of the consolidated financial statements as of and for the year ended December 31, 2009, and this report does
n
ot affect our re
p
ort on such financial statements.
I
n our o
p
inion, because of the effect of the material weakness identified above on the achievement of th
e
objectives of the control criteria, the Company has not maintained effective internal control over financial reportin
g
as of December 31
,
2009
,
based on the criteria established i
n
Internal Control — Inte
g
rated Framewor
k
i
ssued b
y
t
he Committee of Sponsoring Organizations of the Treadway Commission.
7
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