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 …show more content…
1.4 Regulations affecting the company’s operations
Environmental laws and regulations: The environment impact is a critical issue that VAH would consider in its operations. As the most significant environmental impact, Fuel emission is a great issue that VAH focuses on. There are significant monetary value fines and total number of nonmonetary sanctions for non-compliance with environmental laws and regulations. Therefore, to deduct fuel emissions, VAH supported Queensland Sustainable Aviation Fuel project and Mallee Jet Fuel project.
Convention on International Civil Aviation, Civil Aviation Act 1988,Civil Aviation Safety Regulations 1998 (CASR 1998), Civil Aviation Regulations 1988 (CAR 1988), Civil Aviation Orders, Civil Aviation Advisory Publications rules under development manual of standards, Australia’s State Safety Program Virgin Australia maintain a strong safety culture and are committed to increasing awareness of safety in the business. It adopted Security Management System (SeMS) this year to maintain a safe and sustainable operation, and it is approved by the Department of Infrastructure and Transport (Office of Transport Security).
Carbon Tax In order to cover carbon tax,