Risks and Controls in a Changing Business Environment: Global Transportation Facility and Concerns About Missing Revenues*

This case examines the effects of privatization in the aviation industry, specifically as it concerns an airport referred to as the Global Transportation Facility (GTF). In a deregulated environment, it is important for airports to ensure that all revenues earned from aircraft landings and passenger use of its terminal buildings are identified, billed, and collected. This will be a concern to users of financial information, including those holding corporate debt and government authorities, as well as the airport's senior management, board of directors and other stakeholders. Your role as the head of internal audit at GTF is to determine whether aviation-related billings are complete and accurate. You are also concerned about the consequences of errors in reported revenues, including how to identify these and assess their impact.