To conduct an audit, understanding of internal control is required which should be relevent for audit purpose. After evaluating the internal control and its environment, determining inherent risk, control risk and designing appropriate procedures to express an appropriate audit openion in the given circumstances.
Factors For Internal Control Understanding Italic text:
- Ticket reservation system. - Agreement for different routes. - Dicsount policies under what circumstances. - Measurement of cost per mileage. - Measurement of revenue per seat or other suitable bases which are appropriated for Financial Reporting Frame Work - Process for blocking, cancelling and rescheduling of tickets.
Ticket Reservation System Italic text:
a) Understanding of mannual reservation system. b) Understanding of online reservation system.
Control To Prevent Fraud Risk Italic text:
- Fraud detection rules are used for online ticket reservation system where CVV2 response code and AVS response code are used to reduce the risk. - In data base, positive list and negative list are prepared on the bases for regular customer and non-regular customer respectively. - Professional expertise are applied for mannual review of customer data and transaction data.
Other Procedures Italic text:
- Continous care to track and analysis fraud trend. - Enhance the transaction risk indicators. - Ensure the risk mitigation actions are properly applied. - Feild audit is performed for airport, city ticket office and cargo facilities.
Other Matters Italic text:
- Inspecting documents and agreemens regarding whether aircrafts are purchased or on leased. - Recalculation for depreciation schedule or leased schedule if necessary. - Inspecting last year financial information inculding method of depreciation, commission agreement for travel agencies or accounting policies etc. - Valuation of communication infrastructure, maintaince cost and buildings. - Ratio analysis for sale report, customer trend and industry practices.