FairPoint Communications 2007 Annual Report Download - page 72
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Table of Contents
The Board of Directors and Stockholders
FairPoint Communications, Inc.:
We have audited the accompanying consolidated balance sheets of FairPoint Communications, Inc. and subsidiaries (the Company)
as of December 31, 2007 and 2006, and the related consolidated statements of operations, stockholders’ equity (deficit), comprehensive
(loss) 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
FairPoint Communications, Inc. 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 provisions of Financial
Accounting Standards Board (FASB) Interpretation No. 48,
, effective January 1, 2007, and the provisions of Statement of Financial Accounting Standards (SFAS) No. 123
(revised 2004), , effective January 1, 2006.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
Company’s internal control over financial reporting as of December 31, 2007, based on criteria established in
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report
dated February 28, 2008 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.
/s/ KPMG LLP
Charlotte, North Carolina
February 28, 2008
70