Fly, a limited liability company, was incorporated in Zambia on $1$ January $2020$ In February, the company exercised exclusive right granted by the government ol South Africa to provide twice weekly direct flights between Pretoria, the capital of South Africa.

and Lusaka, the capital of Zambia.

The introduction of this service has been well advertised as 'efficient and timely' in national newspapers. The journey time between Zambia and South Africa is expected to be significantly reduced. so encouraging tourism and business development opportunities in

Zambia.

Fly operates a refurbished $35-$year$-$old aircraft which is leased from an international airline and registered with Africa AYiation Authority $($AAA$).$ The AAA requires that engines be overhauled every two years. Engine overhauls are expected to put the aircraft out of commission for several weeks.

The aircraft is configured to carry $15$ First Class, $50$ Business Class and $76$ Economy Class passengers. The aircraft has a generous hold capacity for Zambia's numerous horticullural growers $($e g$.$ of cocoa, lea and fruit$)$ and general cargo

The two$-$hour journey offers an inflight movie, a meal. hot and cold drinks and tax$-$tree shopping. All meals are prepared In Pretoria under a contract wilh an airport catering company. Passengers are invited to complete a 'satisfaction' questionnaire which is Included with the in$-$flight entertainment and shopping guide Responses received show

that passengers are generally least satisfied with the quantity of the food $-$ especially on the Lusaka to Pretoria flight.

Fly employs $10$ full$-$time cabin crew attendants who are trained air$-$stewardship including passenger safety in the event of accidenl and illness. Flight personnel $($the captain and co$-$pMots$)$ are provided under a contract with the international airline from which the aircraft is leased. At the end of each flight the captain completes a timesheet detailing the crew and actual flight lime$.$

Ticket sales are made by Fly and travel agents in Zambia and South Africa On a number of occasions Economy seating has been over$-$booked. Customers who have been affected by this have been accommodaled in Business Class as there is much less demand for this booking and even less for First Class. Ticket prices for each class depeod on many factors, for example, whether the tickets are refundable$/$non$-$refundable. excheableinon$$ e$$changeab$!$e$,$ single or return. mid$-$wee!$($ or weekend, and the $1$me of booking.

Ry$\text{'}$s Insurance cover includes passeng$$ liabdl'fy, freight$/$baggage arnf compen$5$c$100$fl rlsu,ance. Premiums for passenger liabdity Insurance are determined on the basis ol passenger miles nown

Required:

$($Q Identify and e$$p$1$aln the business risll:s facing Fly. $\{8$ marks$)$

$($ii$)$ Describe how $1$he risks identified in $($I$)$ could be managed and maintained al an

acceptable level by Fty$.(8$ marks$)$

$\{$b$)$ You have Just completed your lntem$hip at a fwm ol CMlfied Accountants ar'ld you are competing $10$ be retained as a permanent staff member. The lirrn's audit partner responsible for recrullment wishes $10$ ensure that the successlul candidate is competenl

$1$n the core areas of the aud$$ process As par$1$ ol lhe seecucn process, all candidates have

been requested to submit a memorand$1.$m to the Audit Partner relating to the following:

$$ Computer assisted audit techniques

$$ Going coi,oom

Required:

$($i$)$ Explain the term 'audit software' and describes the key functions petfOflTled by audrt software. $(5$ marks$)$

fiiJ Describe the audit procedures that yoo would perform to assess if a company is a

going concem