US Cellular 2008 Annual Report Download - page 199

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
United States Cellular Corporation:
In our opinion, based on our audits and the report of other auditors, the accompanying consolidated
balance sheets and the related consolidated statements of operations, common shareholders’ equity,
and cash flows present fairly, in all material respects, the financial position of United States Cellular
Corporation and its subsidiaries at December 31, 2008 and 2007, and the results of their operations and
their cash flows for each of the three years in the period ended December 31, 2008 in conformity with
accounting principles generally accepted in the United States of America. Also in our opinion, based on
our audit and the report of other auditors, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2008, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). The Company’s management is responsible for these financial statements, for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in the accompanying Management’s Report on Internal
Control over Financial Reporting. Our responsibility is to express opinions on these financial statements
and on the Company’s internal control over financial reporting based on our integrated audits. We did
not audit the financial statements of Los Angeles SMSA Limited Partnership, a 5.5% owned entity
accounted for by the equity method of accounting. The consolidated financial statements of United
States Cellular Corporation reflect an investment in this partnership of $117,300,000 and $117,200,000 as
of December 31, 2008 and 2007, respectively, and equity earnings of $66,100,000, $71,200,000, and
$62,300,000, respectively for each of the three years in the period ended December 31, 2008. The
financial statements of Los Angeles SMSA Limited Partnership were audited by other auditors whose
report thereon has been furnished to us, and our opinion on the financial statements expressed herein,
insofar as it relates to the amounts included for Los Angeles SMSA Limited Partnership, is based solely
on the report of the other auditors. 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 audits to obtain reasonable assurance about whether the financial statements are free of
material misstatement and whether effective internal control over financial reporting was maintained in all
material respects. Our audits of the financial statements included 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. Our audit of internal control over financial reporting included obtaining an understanding of
internal control over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audits and the report of other auditors provide a reasonable basis for
our opinions.
As discussed in Notes 1 and 3 to the consolidated financial statements, the Company changed the
manner in which it accounts for uncertain tax positions in 2007.
A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
control over financial reporting includes those policies and procedures that (i) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
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