- 20 Marks
AAA – L3 – Q21- Planning
Identify principal control risks for SkyWing Aviation and suggest internal controls to mitigate them.
Question
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.
Find Related Questions by Tags, levels, etc.
- Tags: Audit Planning, Aviation Industry, Control Risks, Internal controls, Small Business
- Level: Level 3
- Topic: Planning an Audit
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