Tag (SQ): Aviation Industry

You are the manager in charge of the audit of SkyWing Aviation, a small airfield which provides fuel, maintenance services, long and short term tie down, hangar facilities and flying tuition in the company’s five light aircraft.

SkyWing Aviation is a family owned company. The two principal shareholders/directors are mainly involved in flying tuition. Other employees are a part-time bookkeeper, a receptionist, two full-time mechanics and other part-time flying instructors.

Required:

(a) Set out the principal control risks for SkyWing Aviation and suggest internal controls which would mitigate those risks.                   (b) Justify an appropriate audit strategy.