SkyWest Airlines 2005 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2005 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

63
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Our management assessed the effectiveness our internal control over financial reporting as of December 31, 2005. Our
management’s assessment excluded ASA, which we acquired on September 7, 2005. As of December 31, 2005, ASA has $1.8
billion and $444.7 million of total assets and net assets, respectively. For the year ended December 31, 2005, ASA had total
revenues of $399.8 million. In accordance with guidance issued by the SEC, companies are allowed to exclude acquisitions from
their assessment of internal controls over financial reporting during the first year subsequent to the acquisition while integrating
the acquired operations. Our management’s assessment was based on criteria for effective internal control over financial
reporting described in “Internal Control – “Integrated Framework” issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Our management’s assessment included an evaluation of the design of our internal control over financial
reporting and testing of the operational effectiveness of our internal control over financial reporting. Our management reviewed
the results of its assessment with the Audit Committee of our Board of Directors. Based on this assessment, our management
determined that, as of December 31, 2005, we maintained effective internal control over financial reporting.
Ernst & Young LLP, independent registered public accounting firm, who audited and reported on our consolidated financial
statements included in this report, has issued an attestation report on management’s assessment of internal control over financial
reporting. This attestation report appears on page 70 of this report.