2023 Consolidated Financial Statements and Notes
pwc
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the year ended December 31, 2023. These matters
were addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
Passenger and cargo revenue recognition
Refer to note 2 - Basis of presentation and
summary of material accounting policies and
note 19 - Revenue to the consolidated
financial statements.
Passenger and cargo revenues are recognized
when the transportation is provided. Total
passenger and cargo revenues recognized for
the year ended December 31, 2023 amounted
to $19,403 million and $924 million, respectively.
Such transactions rely on multiple Information
Technology (IT) systems and controls to process,
record, and recognize a high volume of low value
revenue transactions through a combination of
IT systems and outsourced service providers.
We considered this a key audit matter due to the
significance of passenger and cargo revenues
and the volume of these transactions resulting
in significant audit effort to test the revenue
recognized.
How our audit addressed the key audit matter
Our approach to addressing the matter included
the following procedures, among others:
Tested the operating effectiveness of internal
controls and performed substantive testing on
certain aspects related to passenger and
cargo revenue recognition, which included the
following:
Tested the controls and performed certain
substantive procedures over the relevant
IT systems that management used to
recognize passenger and cargo revenues.
For the IT systems or processes that are
outsourced to third party service providers,
assessed the assurance reports attesting
to the appropriateness and effectiveness
of the internal control systems established
by the service providers.
Tested a sample of passenger and cargo
revenue transactions recorded during the year
by inspecting the consideration received and
the evidence of when the transportation was
provided for passengers or cargo.
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