SkyWest Airlines 2004 Annual Report Download - page 52

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KPMG was appointed as the Company’s independent auditors on June 24, 2002. In connection with KPMG's review of the
Company’s consolidated financial statements as of and for the three and nine-month periods ended September 30, 2002, KPMG
identified certain adjustments to the Company’s accounting for CRJ200 engine overhaul costs and related agreements. SkyWest
and KPMG initially disagreed as to the amount of the adjustments to be recorded in prior fiscal periods. Following discussions
between the Company and KPMG, which discussions involved the Company’s Board of Directors and its Audit and Finance
Committee, those disagreements were ultimately resolved through a re-audit and restatement of the Company’s consolidated
financial statements as of and for the year ended December 31, 2001 and KPMG's issuance of their report with respect thereto.
Additionally, the Company restated its consolidated financial statements as of and for the interim periods ended March 31 and
June 30, 2002. There has been no subsequent disagreement between the Company and KPMG on any matter of accounting
principles or practices, financial statement disclosure, auditing scope or procedure, which disagreement, if not resolved to
KPMG's satisfaction, would have caused KPMG to make reference to the subject matter of such disagreement in connection with
its reports. The Company has authorized KPMG to respond fully to any inquiries of any successor accountant concerning the
subject matter of such disagreements. There have occurred no reportable events as defined in Item 304(a)(1)(V) of Regulation S-
K promulgated by the Securities and Exchange Commission.
The audit reports of KPMG on the Company’s consolidated financial statements for the fiscal years ended December 31, 2002
and 2001, did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit
scope or accounting principles, except as follows:
KPMG's report on the Company’s consolidated financial statements as of and for the year ended December 31, 2001,
contained a separate paragraph stating that "the Company has restated the consolidated balance sheet as of December 31,
2001, and the related consolidated statements of income, stockholders' equity and comprehensive income, and cash flows
and financial statement schedule for the year then ended, which consolidated financial statements and financial statement
schedule were previously audited by other independent auditors who have ceased operations."
KPMG's report on the Company’s consolidated financial statements as of and for the year ended December 31, 2002
contained a separate paragraph stating that "the Company changed its method of accounting for CRJ engine overhaul
costs from the accrual method to the direct expense method in 2002."
During the two fiscal years ended December 31, 2002 and 2001, and the subsequent interim period through April 7, 2003,
SkyWest did not consult with E&Y regarding any of the matters or events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-
K.
The Company provided a copy of the foregoing disclosures to KPMG in connection with the Company’s filing of a Current
Report on Form 8-K, dated April 7, 2003 (as amended on April 9, 2003). A copy of KPMG's letter (as required by Item 304
(a) (3) of Regulation S-K) was filed as Exhibit 16.1 to such Current Report.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Under the supervision and with the participation of the Company’s management, including the Company’s principal executive
officer and principal financial officer, the Company conducted an evaluation of its disclosure controls and procedures, as such
term is defined under Rule 13a-14(c) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
within 90 days of the filing date of this report. Based on this evaluation, the Company’s principal executive officer and principal
financial officer concluded that the Company’s disclosure controls and procedures are effective in alerting them on a timely basis
to material information relating to the Company required to be included in the Company’s reports filed or submitted under the
Exchange Act. There have been no significant changes (including corrective actions with regard to significant deficiencies or
material weaknesses) in the Company’s internal controls or in other factors that could significantly affect these controls
subsequent to the date of the evaluation referenced above.