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United Airlines is one of the largest airlines in the world, serving millions of passengers each year. But who ensures that the company operates ethically and in compliance with financial regulations? That’s where auditing comes in.
Auditing is a vital process that involves examining a company’s financial records and operations to ensure that they are accurate, legal, and ethical. In this article, we’ll take a closer look at who audits United Airlines and what their role is in ensuring the company’s success and transparency. So, let’s get started!
Contents
- Who Audits United Airlines?
- Frequently Asked Questions
- What is auditing?
- Who are the external audit firms that audit United Airlines?
- What is the role of United Airlines’ internal audit team?
- What is the purpose of United Airlines’ Audit Committee?
- What happens if United Airlines’ financial statements are found to be inaccurate?
- United Airlines CEO: It’s going to be a busy summer
- How Many Bags American Airlines?
- How To Fly Standby On American Airlines?
- Why Does My American Airlines Ticket Say Pending?
Who Audits United Airlines?
United Airlines is one of the largest airlines in the world, serving millions of passengers every year. As a publicly traded company, United Airlines is subject to regular audits to ensure compliance with accounting and financial reporting standards. In this article, we will explore who audits United Airlines and what their role is in ensuring the airline’s financial health.
External Auditors
United Airlines is audited annually by external auditors, who are independent certified public accounting firms. The external auditors are responsible for auditing United Airlines’ financial statements and internal control over financial reporting. This includes reviewing the airline’s accounting policies, financial statements, and other financial information to ensure compliance with accounting standards.
The external auditors for United Airlines are currently Ernst & Young LLP. Ernst & Young LLP has been United Airlines’ auditor since 2012. The external auditors are responsible for providing an opinion on the fairness of United Airlines’ financial statements and internal control over financial reporting.
Internal Auditors
In addition to external auditors, United Airlines also has an internal audit function. Internal auditors are responsible for evaluating the airline’s internal controls, risk management, and governance processes. The internal audit function at United Airlines reports directly to the Audit Committee of the Board of Directors.
The role of internal auditors is to provide assurance to management and the Board of Directors that United Airlines’ internal controls are effective and functioning as intended. Internal auditors also provide recommendations for improving internal controls and identifying areas for cost savings.
Audit Committee of the Board of Directors
The Audit Committee of the Board of Directors is responsible for overseeing United Airlines’ external and internal auditors. The Audit Committee is composed of independent members of the Board of Directors who have financial expertise.
The responsibilities of the Audit Committee include selecting and evaluating external auditors, reviewing the scope of the audit, and overseeing the internal audit function. The Audit Committee also reviews United Airlines’ financial statements and other financial information to ensure compliance with accounting standards.
Benefits of Auditing
The regular auditing of United Airlines provides numerous benefits to the airline and its stakeholders. By ensuring compliance with accounting standards, auditing helps to maintain the integrity of the airline’s financial reporting. This helps to build trust with investors and other stakeholders, who rely on accurate financial information to make informed decisions.
Auditing also helps to identify areas for improvement in United Airlines’ internal controls and risk management processes. By providing recommendations for improvement, auditors help to strengthen the airline’s operations and reduce the risk of financial fraud or mismanagement.
Auditing Vs. Accounting
While auditing and accounting are related disciplines, they are distinct in their focus and objectives. Accounting is concerned with the preparation and recording of financial transactions, while auditing is concerned with verifying the accuracy and completeness of financial information.
In other words, accounting is the process of keeping track of financial transactions, while auditing is the process of ensuring that the information recorded in the accounting system is accurate and complete. Auditors use accounting information as the basis for their work, but their focus is on verifying the information rather than creating it.
Conclusion
In conclusion, United Airlines is audited annually by external auditors, who are responsible for ensuring compliance with accounting standards. The airline also has an internal audit function, which provides assurance to management and the Board of Directors that internal controls are effective and functioning as intended. The role of the Audit Committee of the Board of Directors is to oversee the external and internal audit functions and ensure compliance with accounting standards. By regularly auditing United Airlines, stakeholders can trust that the airline’s financial reporting is accurate and complete.
Frequently Asked Questions
Here are some frequently asked questions about United Airlines auditing:
What is auditing?
Auditing is a process of examining a company’s financial records and operations to ensure they are accurate and comply with laws and regulations. Auditing also helps identify areas where a company can improve its operations and reduce risk.
United Airlines is audited by several firms, including its own internal audit team and external audit firms.
Who are the external audit firms that audit United Airlines?
United Airlines is audited by several external audit firms, including:
- Ernst & Young LLP
- PricewaterhouseCoopers LLP
These firms are responsible for auditing United Airlines’ financial statements and providing an independent opinion on whether they are accurate and comply with accounting standards.
What is the role of United Airlines’ internal audit team?
United Airlines’ internal audit team is responsible for providing independent and objective evaluations of the company’s operations. They help identify risks and areas where United Airlines can improve its operations. They also ensure that United Airlines complies with laws and regulations.
The internal audit team reports to United Airlines’ Audit Committee, which is composed of independent directors who oversee the company’s audit activities.
What is the purpose of United Airlines’ Audit Committee?
United Airlines’ Audit Committee is responsible for overseeing the company’s audit activities, including the work of the internal audit team and external audit firms. The committee is composed of independent directors who are responsible for ensuring that United Airlines’ financial statements are accurate and comply with accounting standards.
The committee also reviews United Airlines’ internal controls and risk management processes to ensure that the company is managing its risks effectively.
What happens if United Airlines’ financial statements are found to be inaccurate?
If United Airlines’ financial statements are found to be inaccurate, the company may be required to restate its financial results. This may result in a loss of investor confidence and could negatively impact the company’s stock price.
In addition, United Airlines may be subject to fines and penalties from regulatory agencies if it is found to have violated accounting standards or other laws and regulations.
United Airlines CEO: It’s going to be a busy summer
In conclusion, United Airlines is audited by reputable accounting firms such as Ernst & Young and KPMG. These firms are responsible for ensuring that the airline’s financial statements are accurate and comply with the generally accepted accounting principles.
Auditing is a crucial process that helps maintain transparency and accountability in the financial operations of companies like United Airlines. Through these audits, investors and stakeholders can have confidence in the airline’s financial performance and make informed decisions about their investments.
In summary, United Airlines’ auditors play a vital role in the airline’s financial operations, ensuring that the company’s financial statements are accurate and reliable. With their help, United Airlines can continue to provide safe and efficient air travel services to millions of passengers worldwide.
