ACCOUNTING ASSIGNMENT

Accounting Assignment

Introduction

British Airways (BA) is the British flag carrier airline, based near London Heathrow Airport, the main hub of the Gulf. British Airways, the national carrier in the United Kingdom, achieved growth in the number of passengers during the first month of 2011. Despite that the year 2010 was full of challenges faced by the civil aviation sector. The growth has been encouraged by the launch of Hotel discounts on the degree of Club World (business class) on the lines of the Middle East to Europe and North America.

British Airways Board was established in 1971. It started with the control of state-owned airline on the river Tyne, United Kingdom overseas and BEA, two smaller regional airlines, from Cardiff, and Newcastle Cold Air Northeast Airlines two. On the 31st of March, 1974 four companies were dissolved, to form British Airways (BA). After nearly 13 state-owned enterprises, the British Airways was privatized in February 1987 as part of the privatization by the then Conservative government. Carriers to expand and British Caledonian (BCAL) and Gatwick rapidly in 1987, major airlines in 1992 was acquired by Dan. (Lavery & Brian, 2005)

Although long-term customers of Boeing, British Airways placed a big order to purchase 59 Airbus Family aircraft in the month of August 1998. In 2007, the carrier placed large orders for its next, marking the replacement of its long-haul fleet. The starting order comprised of 12 Airbus A380 and 24 Boeing 787 aircraft. The airline's fleet is the core of long-haul Boeing 747-400, with 57 typical examples. British Airways is the world's largest operator in the airline industry. (Brothers & Caroline, 2008)

British Airways is a founding member of the world of airline alliance, along with American Airlines, Cathay Pacific, Qantas and Air Canada that has been dissolved. The alliance won more second only to Star Alliance and Sky Team, the third largest airline alliance. The parent company of British Airways, International Air Group, is traded on the London Stock Exchange and is a constituent of the FTSE 100 index. (Bokaie, 2008)

On the 12th of November, 2009, British Airways confirmed that it has reached a preliminary agreement, the merger Iberia. Merger between the two carriers will create the world's annual income and the second largest airline in Europe, the third largest airline group. Merger was scheduled on the 8th of April, 2010 confirmed, but is expected to be completed by the end of this year. On the 14th of July, 2010, the European Commission approved the merger of the two operators, and agreed to allow the cooperation of American Airlines and the combined entity of the United States in the operation of trans-Atlantic routes. British Airways and Iberia merger finally completed on January 21, 2011, and the formal establishment of an international aviation group, IAG's was formed. (Wilson & Elliot, 2010)

Evaluation of risk-based approach to external audit

Ernst & Young are the external auditors who have been doing the audit for the British Airways in the past and following are some criticisms of them by some ...