The audit process may be defined as a specific set of procedures and actions for organizational control that aim to prove the efficiency of all processes and help to identify the opportunities for the improvement of the whole audit process in general. The fundamental objective of the audit process is to verify the alignment of the company’s processes with its strategic vision. In addition, it evaluates the processes’ operational efficiency, access risks, verifies the protection of the organization’s assets from the process chain and data security and reliability, detects incorrect procedures during organizational processes, reports failures, and recommends appropriate corrections (Byrnes, et al., 2015). In turn, the company’s monitoring implies the management of continuous business processes to control their deviations from and adherence to the intended levels of efficiency. In general, the audit process and monitoring are highly essential for any company as they substantially contribute to the continuous improvement of its productivity.
As a low-cost carrier, Gold Airlines defines cost-effective flights for customers with an average income, the development of Siberian transportation, and the improvement of the connection between the country’s European and Asian parts as its priorities. The strategic plan of the company for the first year of launching implies the customer traffic of 3 million people due to the use of 50 aircraft, and an average ticket price of 73$. The audit process helps to define whether the carrier’s current business processes align with its vision and strategies of development. For measurement, test checking should be applied as the airline company is a considerably large organization, and physical routine checking of all assets and transactions is impossible.
First of all, the audit plan of Gold Airlines should include an internal financial audit to evaluate the accordance with the company’s current price determination with expected goals. In general, the audit helps to define the route’s ideal price to reach the highest turnover in the case of the completely met demand. As a matter of fact, the ideal price may be regarded as an indicative value. While setting the ticket price above this figure generates more revenues for a carrier, it will inevitably reduce the number of customers, and the investments in new routes may considerably increase. At the same time, setting the ticket price below this figure is not recommended as well due to the reduced profitability of aircraft.
Concerning Gold Airlines, based on the analysis of competitors’ prices, the carrying capacity of planes, and the company’s performance in a low-cost segment, it is possible to conclude that its pricing policy is appropriate. It goes without saying that ticket prices may vary according to the duration of a flight, season, destination, and the consumer’s participation in a loyalty program. In addition, the ideal price may be redefined in the future as new destinations will be open, and agreements with local and international partners may affect ticket prices. In the future, it is highly recommended to monitor the prices of competitors on a regular basis and adjust prices according to the company’s state as well.
The fleet size of Gold Airways presents 50 aircraft with a capacity of approximately 160 seats in every plane. In addition, the company has four hub airports in Moscow, Ekaterinburg, Irkutsk, and Khabarovsk. Taking into consideration the carrier’s stage of development and current destination, the fleet is properly designed for the achievement of goals. However, in the future, when new destinations are explored and with the implementation of a loyalty program and the cooperation with other airline companies and hotels that attracts more customers, the size of the fleet should be increased. Moreover, the technical condition of every plane should be properly recorded for control over renovation expenditures.
As customer satisfaction directly affects turnover and the company’s revenue, this aspect should be considered as well. In the present day, passengers may be attracted not only by the company’s services but its sustainability as well. Even though the airline industry plays a highly essential role in the tourism sector and transportation, it induces negative economic impacts, inappropriate labor practices, air pollutants, and noise (Chang, et al., 2015). As a low-cost carrier, Gold Airways does not pay particular attention to passenger satisfaction related to the use of sustainable transport. This tendency may reduce the number of customers, and that is why the strategy of corporate social responsibility (CSR) should be implemented (Chang, et al., 2015). The implementation of this business activity includes risk and crisis management, corporate governance, brand management, and service safety (Chang, et al., 2015). CSR strategies may improve customer loyalty as they increase the company’s value that may be regarded as necessary for continuous effective performance on the local and international markets.
In general, the audit process may be regarded as the analysis and recommendations for the improvement of the company’s productivity. It helps to evaluate the efficiency of business processes and their alignment with the organization’s goals and visions. With the help of test checking, it is possible to conclude that the current strategies and activities of the Gold Airways are efficient and contribute to the company’s mission as a low-cost carrier. At the same time, the strategies for a sustainability need to be implemented for consumer retention.
References
Byrnes, P., Brennan, G., Vasarhelyi, M., Moon, D., & Ghost, S. (2015). Managing risk and the audit process in a world of instantaneous change. In Audit analytics and continuous audit: Looking toward the future. (pp. 129-143). American Institute of Certified Public Accountants.
Chang, D., Chen, S., Hsu, C., & Hu, A. H. (2015). Identifying strategic factors of the implantation CSR in the airline industry: The case of Asia-Pacific airlines.Sustainability, 7, 7762-7783. Web.