Virtual reality is any digitally created 360 spherical environment that a person can be inside of and interact with by virtue of a VR headset. In that environment, depending on how it was created, the person can view things, move around, and touch, hold, throw, alter objects there.
Spatial 360 audio furthers grounds the experience, by connecting specific sounds to certain objects and events in surround sound. The addition of haptics in the form of hand-held controllers adds even more realism to the experience. Within this scenario, you are completely surrounded by the created world.