US Cellular 2009 Annual Report Download - page 85

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, comprehensive income, changes
in equity, and cash flows present fairly, in all material respects, the financial position of United States
Cellular Corporation and its subsidiaries at December 31, 2009 and 2008, and the results of their
operations and their cash flows for each of the three years in the period ended December 31, 2009 in
conformity with accounting principles generally accepted in the United States of America. Also in our
opinion, based on our audits and the report of other auditors, the Company maintained, in all material
respects, effective internal control over financial reporting as of December 31, 2009, 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
$116,000,000 and $117,300,000 as of December 31, 2009 and 2008, respectively, and equity earnings of
$64,700,000, $66,100,000, and $71,200,000, respectively for each of the three years in the period ended
December 31, 2009. 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 provide a reasonable basis for our opinions.
As discussed in Notes 1, 2 and 5 to the consolidated financial statements, the Company changed the
manner in which it accounts for noncontrolling interests and business combinations in 2009 and 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.
77