Ponyo Airways became a client of an audit firm for the first time this year. Soon after taking the engagement in September last year, Ponyo Airways was under investigation by the Australian Competition and Consumer Commission (ACCC) for allegedly fixing prices on some routes in collusion with another airline. The two airlines made an illegal arrangement to not compete with each other so that they both benefited by sharing the business and maintaining prices that would allow them to make profits. After the ACCC investigation became public, several of Ponyo Airways’ key corporate customers decided that they did not wish to associate themselves with the airline and severed their exclusive travel dealings with Ponyo Airways.

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How does the above information affect your understanding of the control system at Ponyo Airways?