auditing case study--Virgin Australia Essay

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Executive Summary
This report analyses Virgin Australia (ASX code VAH) and identifies its potential business and audit risks that will need to be addressed in the 2014 audit. It is presented to the Virgin Australia Audit Committee as part of the 2014 Audit planning process.
The first part of this report provides a broad introduction into the business of Virgin Australian by examining its principal sources of revenue, its nature of operating, its competitors, the market share and the regulations affecting its operations. From this, it can be seen that Virgin Australia operates in a very competitive environment and generates revenue by the core business of passenger and cargo transport.
The second part of this report analyses the
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Airport Lounges - Virgin Australia provides airport lounges at Sydney, Melbourne, Brisbane, Canberra, Adelaide, Perth, Mackay and Gold Coast domestic airports. Designed for frequent travelers, entry is by membership only.
Velocity Rewards - Virgin Australia's loyalty program that allows points to be used to purchase airline travel, hotel nights, car hire, online shopping and charitable donations.
Freight - Virgin Australia offers domestic and international freight services to its customers, including same day and overnight express, perishable cargo, dangerous goods and animal transport services.

The diagram is company’s every week flights, and we can observe it directly.

1.3 Competition Analysis
Virgin Australia is facing competition from both international market and domestic market.
The major competitor is Qantas Airways Limited which is the largest airline in Australia base on the number in fleet. Qantas has 244 aircrafts and Virgin Australia has 128 aircrafts according to Australian civil aircraft register search on ‘Civil Aviation Safety Authority’ on January 2014.
Domestic market Virgin Australia, including Tiger Australia (Virgin owns 60% of Tiger now), occupies 35% of the domestic market share in Australia, and its major competitor Qantas, including its subsidiary Jetstar, accounts for a majority of 61% of the domestic market share in January 2014.Qantas (QF) has grown by 18% over 5 years (Jan 2008 vs. Jan 2014) while Virgin Australia

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