One page auditing Bullet points summary about 2019 financial results of Air NewZealand in terms of the questions below:

a) What are the business activities of Air New Zealand Limited that you will need to understand to carry out a successful audit? Using information, you obtain about the company, and the industry it is in, come to an informed view as to the business and industry risk for this prospective client. Be sure to set out the basis (reasons) for your decision.

b) Evaluate issues to do with (i) Self-review and (ii) Familiarity threats to independence that could potentially arise from performing a statutory audit on the financial statements of Air New Zealand. Explain why these issues could be a threat to the credibility of the financial statements and how those issues should be addressed before accepting the offer from OAG?

c) Evaluate issues to do with (i) Advocacy and (ii) Intimidation threats to independence that could potentially arise from performing a statutory audit on the financial statements of Air New Zealand. Explain why these issues could be a threat to the credibility of the financial statements and how those issues should be addressed before accepting the offer from OAG? Note: for question (b) and (c), refer to the Professional Code of Ethics as appropriate. Keep in mind the ownership of Air New Zealand, the role of the Financial Markets Authority (FMA), legislation, XRB Auditing Standards and the Auditing Standards and Statements of the Auditor General.

d) What are the key accounting issues from your review of other sections in the annual reports and financial statements, including the accounting policies? Based on your understanding of the business and the accounting issues, what specialist skills and competencies will you need to carry out the audit?

e) Identify specific parties who may rely on the work of the auditor and the audit firm. Also identify what remedies are available to those specific parties should they be dissatisfied with the standard of the audit work. Describe some conditions (with reference to existing legal precedent) in which they might be successful in any action taken.

Note: the report can be found in Results centre - annual and interim results when you google it.