Frontier Communications 2007 Annual Report Download - page 53

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Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders
Citizens Communications Company:
We have audited the accompanying consolidated balance sheets of Citizens Communications Company and
subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements of operations,
shareholders’ equity, comprehensive income and cash flows for each of the years in the three-year period ended
December 31, 2007. These consolidated financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these consolidated financial statements based on our
audits.
We conducted our audits 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 includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of Citizens Communications Company and subsidiaries as of December 31, 2007 and 2006 and
the results of their operations and their cash flows for each of the years in the three-year period ended
December 31, 2007, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 2 to the accompanying consolidated financial statements, the Company adopted the
recognition and disclosure provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income
Taxes” as of January 1, 2007. As discussed in Notes 1 and 2, effective January 1, 2006, the Company adopted the
fair value method of accounting for stock-based compensation as required by Statement of Financial Accounting
Standards No. 123(R), “Share-Based Payment” and Staff Accounting Bulletin No. 108, “Considering the Effects
of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements”. Also, as
discussed in Note 23, the Company adopted the recognition and disclosure provisions of Statement of Financial
Accounting Standards No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
Plans” as of December 31, 2006.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), Citizens Communications Company’s internal control over financial reporting as of
December 31, 2007, based on criteria established in Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated
February 27, 2008 expressed an unqualified opinion on the effectiveness of the Company’s internal control over
financial reporting.
/s/ KPMG LLP
Stamford, Connecticut
February 27, 2008
F-3