Cincinnati Bell 2006 Annual Report Download - page 166

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareowners of Cincinnati Bell Inc.
We have audited the accompanying consolidated balance sheets of Cincinnati Bell Inc. and subsidiaries (the
“Company”) as of December 31, 2006 and 2005, and the related consolidated statements of operations,
shareowners’ equity (deficit) and comprehensive income (loss) and cash flows for the years then ended. Our
audits also included the financial statement schedules (Schedule II) as of and for the years ended December 31,
2006 and 2005. These financial statements and financial statement schedules are the responsibility of the
Company’s management. Our responsibility is to express an opinion on the financial statements and financial
statement schedules 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 Cincinnati Bell Inc. and subsidiaries at December 31, 2006 and 2005, and the results of their
operations and their cash flows for the years then ended, in conformity with accounting principles generally
accepted in the United States of America. Also, in our opinion, such financial statement schedules, when
considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all
material respects, the information set forth therein as of and for the years ended December 31, 2006 and 2005.
As discussed in Note 1 to the consolidated financial statements, effective January 1, 2006, Cincinnati Bell
Inc. elected application of Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year Financial Statements and FASB Statement
No. 123(R) (revised 2004), Share Based Payment. As discussed in Note 9 to the consolidated financial
statements, the Company adopted the provisions of FASB Statement No. 158, Employers’ Accounting for
Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106,
and 132(R), effective December 31, 2006.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the effectiveness of the Company’s internal control over financial reporting as of December 31,
2006, 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 March 1, 2007 expressed an
unqualified opinion on management’s assessment of the effectiveness of the Company’s internal control over
financial reporting and an unqualified opinion on the effectiveness of the Company’s internal control over
financial reporting.
/s/ Deloitte & Touche LLP
Cincinnati, Ohio
March 1, 2007
56