Progress Energy 2007 Annual Report Download - page 69

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Progress Energy Annual Report 2007
67
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Progress Energy, Inc.
We have audited the accompanying consolidated balance sheets of Progress Energy, Inc., and its subsidiaries (the
Company) at December 31, 2007 and 2006, and the related consolidated statements of income, comprehensive income,
changes in common stock equity, and cash flows for each of the three years in the period ended December 31, 2007.
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the 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, such consolidated financial statements present fairly, in all material respects, the financial position of
the Company at December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the
three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted in the
United States of America.
As discussed in Note 14 and Note 16 to the consolidated financial statements, on January 1, 2007, the Company
adopted Financial Accounting Standards Board Interpretation No. 48 and on December 31, 2006, the Company adopted
Statement of Financial Accounting Standards No. 158.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the Company’s internal control over financial reporting at December 31, 2007, based on the criteria established
in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission, and our report dated February 28, 2008, expressed an unqualified opinion on the Company’s internal
control over financial reporting.
Raleigh, North Carolina
February 28, 2008