Question: You are undertaking the audit of Virgin Australia for the period ending 31/3/20 and your task is to provide a report to your audit partner to assess the impact of Covid- 19 on the planning of the audit of Virgin Australia. That is, you are in phase 1 of the audit. You are only required to focus on Covid-19 and how it would impact on the planning of the audit.

The planning of an audit includes:

• Gaining an understanding of the entity/industry within which the entity operates
• Undertaking an inherent riskanalysis
• Developing an appropriate assessment of auditrisk
• Identifying the amount of evidence to collect and type of evidence to collect (audit evidencemix)
• Assessing whether the entity is a going concern as perASA570

It is recommended that your discussion addresses these as part of your answer to question. Your answer should also identify any specific accounts in the financial reports that may need to be investigated due to the impact of Covid-19 (and a brief explanation as to why these accounts should be investigated).

You are notrequired to consider fraud in your discussion or the internal controls of the entity. You are not required to identify any control risks for this question - you may assume that controls are strong and therefore control risk is low.