Business Context and Reporting Period
This Form 8-K Current Report is filed by Era Group Inc. (not Bristow Group Inc.) on June 18, 2018. The filing addresses a change in the company's independent registered public accounting firm. The registrant is incorporated in Delaware and headquartered in Houston, Texas.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance and audit matters.
Material Changes
- Dismissal of Auditor: On June 18, 2018, the Audit Committee dismissed Ernst & Young LLP (EY) as the independent registered public accounting firm.
- Engagement of New Auditor: On June 13, 2018, the Audit Committee authorized the engagement of Grant Thornton LLP, who were formally engaged on June 18, 2018, for the fiscal year ending December 31, 2018.
- Audit History: EY's audit reports for fiscal years 2016 and 2017 were unqualified. However, material weaknesses in internal controls were identified in both years:
- 2016: Weakness related to the existence and proper classification of property and equipment.
- 2017: Weaknesses related to review controls over accrual of interest for tax installment agreements (Aeróleo subsidiary) and controls over the calculation of tax provisions.
- Disagreements: The company reported no disagreements with EY regarding accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on business outlook, or specific risk factors beyond the disclosed history of material weaknesses in internal controls over financial reporting. The company confirmed that EY agreed with the statements regarding the dismissal and lack of disagreements.
Investor Verification Checklist
- Verify the identity of the registrant as Era Group Inc. (distinct from Bristow Group Inc.).
- Review the transition plan between EY and Grant Thornton LLP to ensure audit continuity.
- Assess the remediation status of the material weaknesses in internal controls identified in 2016 and 2017.
- Confirm that no undisclosed disagreements or reportable events exist between the company and the former auditor.