INTERNAL AUDIT HOTEL WORK PROGRAM

Note: This program is based on assumed or anticipated conditions. If program is changed as a result of conditions found in the field, describe the changes in an attached memorandum (indicate location) and state the reasons for such changes. All changes should be brought to the attention of internal audit prior to execution. Other changes (i.e., made to improve the efficiency of the wor program or to update the program for changes in the !ompany"s operating procedures) should be communicated to internal audit by submitting a copy of the section to be changed with the changes clearly indicated.

AUDIT WORK

PROGRAM

This schedule should be used to assist the internal audit team in planning the work for the week. A. WORKPROGRAM AUDIT AREAS: AREA Financial Control, Planning an O!"ration# R"$i"% Foo an B"$"rag" Front &"#' S"c(rit) In*or+ation T"c,nolog) Nig,t A( it Acco(nt# R"c"i$a-l" Acco(nt# Pa)a-l" Ca#,i"r Ho(#"'""!ing Pa)roll P(rc,a#ing.R"c"i$ing. R"/(i#itioning A##"t Sa*"g(ar # an S(-#tantiation 0 E$al(ation RISK LEVEL (H,M,L) RESPONSIBILITY NOTES

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Mi#c"llan"o(#1 Ta2"# Manag"+"nt Agr""+"nt# Ro)alt) F"" E2!"n#" Pro!"rt) an E/(i!+"nt Maint"nanc".S"r$ic" Contract# Conc"##ionair"#, Stor" T"nant# 0 Ot,"r Ca!ital E2!"n it(r"# Ent"rtain+"nt, Pro+otion an Manag"r3# E2!"n#" 4o(rnal Entri"# M)#t"r) S,o!!ing Flo%c,art# Flo%c,art S(++ar) XV

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XVI XVII ADMINISTRATIVE

#otel visited %ates of visit Audit Team &embers Auditee !ontact

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*re+audit pac age sent to %irector of ,inance &anager -eview ,ile complete

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%ate *erformed

PRIOR TO LEAVING FOR THE FIELD

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..

/ wee s in advance0 !all and notify the property %irector of ,inance (%O,) of the site audit. ,ind out if !entral Accounting is used and for what processes, who is the -egional %O,, which %irector, Operations ,inance they report to at !orporate. )mail the planning letter. At least 2 wee s in advance0 *urchase airline tic ets. )+mail 3.4.*. Operations ,inance to determine if there are any specific concerns5areas of concentration. )+mail %ir. 3ales 6 *roperty Tax to determine if there are tax issues that need to be addressed -eview any prior internal audit wor papers5audit report for the site.

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1.

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2.

Administr ti!e "#ontin$ed%

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%ate *erformed

WHILE IN THE FIELD

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.. 1.

7hen you chec in, re8uest a safe deposit box. This is necessary for the procedures that you will perform for the ,ront %es section. If !entral Accounting (!A) issues are noted, contact !A A3A*. 7e should get !A9s buy in on the observation and management action if it involves them. !omplete flowcharts. 3ee flowchart pac et for instructions. )+mail the draft report to the &anager on Thursday. At the closing meeting, give the %O, the satisfaction survey. As them to provide comments on the eval if possible. After the closing meeting, e+mail the report to the Internal Audit &anager. )+mail to the &anager0 your team9s hour and expenses, one page staff evaluation. 7or papers 6 updated flowcharts should be placed in a labeled binder and stored in the audit room at hotel9s corporate head8uarters.

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2. /. :.

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;. <. =.

3teps mar ed with a red star are critical and should be given special attention.

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Des&ri'tion o( #ontro)s
The controls/tests throughout the workprogram are designated by type. C and T represent Control and Test respectively. The following provide definitions of Pervasive, Monitoring and Specific. B. Pervasive Controls (PC) These are controls that are pervasive across a risk control process and provide an overall conte t to ensure an appropriate segregation of duties !authori"ation, custody and record keeping# and information integrity. The following are pervasive controls$ Communicate risk control ob%ectives &stablish authority and assign duties Create physical safeguards 'pply process/system development (mplement process change controls (mplement access controls

C. Monitoring Controls (MC) Controls related to activities e ecuted by risk control process owners to monitor the performance of the risk control process. Monitoring activities include both$ D. )btaining direct evidence of operation of specific risk controls Testing the results of control processes

pecific !isk Controls ( C) These are risk controls specific to either business risks on the *usiness +isk Model or to risks affecting the integrity of information and information processing. These controls are implemented to provide front line of defense in preventing, detecting and correcting errors. The following are specific risk controls$ )btain prescribed approvals &stablish transaction/document control Match and compare internal and e ternal documents ,alidate against predefined parameters &stablish processing and transmission control totals +ecalculate computations &valuate -''P compliance +eport and resolve e ceptions Perform reconciliations (ndependent verification

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TA*LE OF #ONTENTS

XVII ADMINISTRATIVE..........................................................................................4 I. FINANCIAL PLANNING AND CONTROL (DIRECTOR OF FINANCE (DOF)).................9 III. FOOD, BEVERAGE AND BANQUET OPERATIONS.............................................12 OVERVIEW........................................................................................................ 12 FACILITIES ( OUSEMEN) ! SET!UP C AIRS AND TABLES BASED ON T E BEO ......1" III. IV. FRONT DESK OPERATIONS.......................................................................1# OVERVIEW........................................................................................................ 1# V. NIG T$INCOME AUDIT FUNCTION..................................................................2% OVERVIEW........................................................................................................ 22 GCR DATE OF DEPOSIT BANK STATEMENT DATE OF DEPOSIT AMOUNT............................................................................................................ 2# OVERVIEW........................................................................................................ 2& OVERVIEW........................................................................................................ 29 X. RECEIVING................................................................................................... '# XI. STOREROOM REQUISITIONING.......................................................................'# XII. ACCOUNTS PA(ABLE....................................................................................'9 XIII. PA(ROLL.................................................................................................. 42 XIII. PA(ROLL................................................................................................... 44 XIII. PA(ROLL................................................................................................... 4) XIV. INFORMATION TEC NOLOG(.......................................................................4# XVI. GENERAL BOOKS ........................................................................................)) XVII. M(STER( S OPPING...................................................................................)# FOR DISCUSSION PURPOSES ONL(.....................................................................)#

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INTERNAL AUDIT DEPARTMENT..........................................................................)&

Appendix . 3atisfaction 3urvey

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I+ ,ES $$$$$

FINAN#IAL PLANNING AND #ONTROL (%irector of ,inance (%O,)) NO $$$$ $ .. Analytical -eview of 'usiness *erformance a. To gain an understanding of the local mar et, review the 3mith Travel report or any other mar et trend reports that the property has. b. -eview the -eport of Operations. !ompare significant variances (> .?@) from prior year to current year and the forecast (balance sheet and *6A). Attach the Operations -eport and document explanations for any variances on page 2. c. %oes management follow up on significant variance from budgetB #as management ta en action on the significant any variances that we noted in step .B

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d.

*roperty *erformance &easures !orporate uses a scoring system to evaluate properties. There are = performance measures on the scoring system. Obtain the most recent scoring system from the property. -eport the status of all the performance measures in the report. Attach the scoring system and document management9s action plan to address any measures that are in the red on page 2. #ow many ,inance ,T)9s are thereB 4acation #ave all accounting employees ta en mandatory vacation in the past yearB !ompliance with prior audit recommendations0 %ate of last internal audit $$$$$$$$$$$$$$$$$$$$$$$$$$$$ #ave all audit recommendations from the last internal audit been complied withB If no, indicate the reason for non+compliance. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

2. /. :.

a.)

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*USINESS PERFORMAN#E REVIEW FOR THE PERIOD ENDED

Analytical -eview (from page .) %ocument explanations for variances. 'e sure to consider the following ey measures. -ev*ar Occupancy -ate A%Total -evenue -ooms *rofit @ ,6' *rofit @ !ap )x @ ()xpense5Total -evenue) )'IT%A

*roperty *erformance (from page .) %ocument action plans for scoring system measures in the red. %I3!C33IOD O, 4A-IATIOD30

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II+ ,ES

ASSET SAFEGUARDS AND SU*STANTIATION - EVALUATION NO :. *hysical Inventory Are physical inventories ta en periodicallyB Inventory Type ,ood 'everage 'ig ,our (china, silver, linen, glass) Operating 3upplies Obtain most recent physical inventories and perform the following0 a. Trace ending physical inventory total to the general ledger. b. c. %oes a member of the Accounting %epartment participate in the count to ensure that the counts are independentB Are Eournal entries made to adEust the F5A inventory balance to the physical countB Are adEustments approved by the %O,B Obtain explanations for any large adEustments. If any of these items expensed as purchased, it is important to determine that expenses are being strictly monitored to identify possible loss from shrin age. Analytical -eview of Inventory Aevels (&T) -eview the financial statements for the period under audit and compare big four and operating supplies inventories with balances for the same period in the prior year. Obtain explanations for any variances over .?@ of the prior year balance. %ead 3toc (Don+,ood) Risk: The inventory balance may not be accurate because it may include inventory that is no longer useful. There should be a reserve for dead stock inventory or it should be written-off. %etermine the extent of dead stoc on hand if any, and comment on disposition. Guantify dollar amounts and note if all or part of stoc is included in the current assets of the hotel or has been written off. ,re8uency

d. ;.

<.

=. -eserves Accounts &! Are reserves accounts reviewed and evaluated periodicallyB (A5-, ,6' inventory, 'ig ,our, any othersB) ,re8uency0 $$$$$$$$$$$$$$$$$$$$$$$$$$

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III+ FOOD. *EVERAGE AND *AN/UET OPERATIONS *erson interviewed0 (Csually ,ood and 'everage &anager or Assistant)

1 covered by flowchart
%ate of interview0 O!er!ie0 The ,6' department is responsible for ordering food and beverage, creating menus, managing food cost, staffing, food outlets (restaurants), ban8uet tips, ban8uet contracts and mini+bars. )mployees include chefs, servers, outlet managers, ban8uet manager, room service and itchen help. ,6' profit and loss are reported separate from room revenue. The point of sale (*O3) system is similar to an electronic cash register. The system is used to record the sale of food and beverage. ,ES NO THE FOLLOWING /UESTIONS RELATE TO A POINT OF SALE "POS% S,STEM: .. *rocess ,lowcharts (&eetings 6 !onventions and ,ood 6 'everage) -eview our process flow chart with the process owner. %ocument any variations from the standard flowchart on a separate page. All deviations should be labeled0 F'*, 7ea ness or Deutral. 1. 3egregation of %uties H*! Are the cashiering and serving functions performed independently of each otherB (This is not independent for bar functions) %oes the system assign uni8ue, se8uential chec numbers to each chec B

2. *!

/. 3! Are voided chec s approved by the hotel managementB There is a risk that voided checks may not be approved or that they are being approved by people who do not have authority to do so. a.3T 'ased on review of the voided chec report and the originally voided chec s from a previous day, were all voided chec s properly approved. %ate reviewed :. -ecording 3ales )nsure that all ,6' sales are recorded. There is a risk that food or drink could be served, the cash payment pocketed by the server and no sale will be recorded. One control is that servers must enter orders in the PO and the kitchen only prepares food ! beverage based on what is entered in the system. a. In8uire to confirm that the itchen only prepares ,6' based on orders entered into the *O3 system by servers. b. Observe the itchen to verify the process.

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;.

Inventory Analysis !alculate, compare and explain significant variations for the following inventory ratios0 &onth 1??. a. ,6' inventory turnover (!OF35Avg. Inventory) (&onth) 1???

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b. ,6' I of days in inventory (Avg. Inv.5Avg. daily !OF3)$$$$$$$$$ c. !OF3 as @ of ,6' revenue <.

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*T ,ood and 'everage !ost 7e want to ensure that ,6' costs are being managed. There is a risk that the property may not be managing costs, and in turn, losing potential revenue. a. %etermine how the property calculates A#TUAL ,6' cost (e.g. beginning inventory J purchases K ending inventory L !OF3). -5 &"t"r+in" ,o% t," !ro!"rt) r"cor # BOOK F0B co#t (e.g., food is received, entered in inventory, re8uisitioned from the storeroom and the expense is assigned to the applicable department by the ,inance department). c. ,or the month being tested, was there a significant difference between A#TUAL 6 *OOK ,6' !OF3B

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III+ FOOD. *EVERAGE AND *AN/UET OPERATIONS "#ont2d% THE FOLLOWING /UESTIONS RELATE TO *AN/UETS: "Per(ormed 03& terin4% =. !ompleted 'an8uet )vent Orders (')O) 3! Are 'an8uet )vent Orders (')O) utiliMed for all ban8uet functionsB *olicy and procedures state0 The "#O is a summary of the event details taken from the event contract. The "#O specifies the function room, table and chair configuration, number of people, type of food and beverage. This is used to set up the room and to prepare and serve the food. 3elect 2 ')Os. -eview for the following0 a. b. c. d. e. 3et up details (A4, )ngineering, tables, etc.) 3tated food and beverage prices &inimum guarantee number of covers !ustomer9s signature *ublic room charges *EO 'an8uet Dame a b c d e S )es #ontr &t Na Nb Nc Nd

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III+ FOOD. *EVERAGE AND *AN/UET OPERATIONS "#ont2d% =. !ompleted 3ales !ontracts &T !onvention 3ales, !onference 3ales 6 !atering !ontracts0 + -ef. *olicy and procedures ()xecution of 7ritten contracts + &anaged). Test 2 sales contracts (if applicable examine the contracts related to the ')Os selected in step N). Obtain the sales contract from sales or catering department. a. b. c. d. .?. 3igned0 %etermine that the sales contract has been signed by all parties on a timely basis. 3td. !ontract0 %etermine the contract follows the standard hotel format(s). )nsure that the corporate legal department has reviewed the contract, per policy and procedures. !ancellation0 %etermine that the appropriate cancellation5damages clauses are included to protect corporate in the event of a canceled event. !redit Application0 If a credit was extended, ensure that A5- has an approved credit application on file.

!ompleteness of 3ales for !ash 'ars &! Is the consumption report for cash bars compared to the cash beverage sales per event for reasonablenessB There is a risk that four bottles of vodka may have been used, however, there were only sales for three bottles recorded. $ server could pour e%tra drinks for additional tips. 'y whomB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

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%escription of 3ales and 3ervicing responsibilities related to ,ood 6 'everage. Department Corporate Sales Description . /ational Sales handled by a national sales office . 'll rooms, usually no 01* involved . Corporate sales coordinates everything . Tour coordinator services the entire event . 'll rooms, usually no 01* involved . . . . . + + 2ong term contracts. Commitments for multiple years (nitiated by a sales manager 3455 rooms per night Corporate meeting, convention and association clients Std. contract created in 6elphi !785 pages# M'C services the event Meetings and Convention Services !M'C# creates the event +esume !billing info, ,(Ps, 9 of rooms, shuttle info, registration info, outlet activity, authori"ed signatures# + Catering creates the *an:uet &vent )rder !*&)# + *an:uets handles the 01* . + + + + + + Catering Sales . + + + + + + + . . Short term contracts. ;sually book less than a year in advance <=>5 rooms per night SM&+0 and Sports team clients Std. Contract created in 6elphi !78 pages# M'C services the event and coordinates the 01*, unless there is a special 01* need M'C prepares the event resumes and the *&) *an:uets handles the 01* Short term contracts 2ocal/social events ?5@ of business is local events, 85@ is from Convention Sales -uest deals with catering from the beginning of the process May not have any rooms, or less than =55 rooms &vents are usually pre.paid Prepare sales contract and *&) *an:uets handles the 01* Aandles the 0ood 1 *everage based on the *&) received Set.up chairs and tables based on the *&)

Tour Sales

Convention Sales

Conference Sales

*an:uets 0acilities !Aousemen#

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III+

IV+ FRONT DESK OPERATIONS

*erson interviewed0 (Csually ,ront %es &anager) %ate of interview0 O!er!ie0 The front des is the department that handles guest chec in and out. Fuest 3ervice Agents (F3A9s) wor the front des . F3A9s have cash drawers to serve guests. &oney from the cash drawers is ept loc ed in safe deposit boxes. !ash collected for payment of guest charges is deposited with the Feneral !ashier on a daily basis. F3A9s are responsible for ensuring that the correct room rates are charged. ,ES NO .. Fuest !redit 7hen guests chec in0 a. 3! Is credit card authoriMation obtainedB There is a risk that proper credit card authori&ation is not obtained, and therefore, payment for hotel services may not be collected. b. Is advance payment obtained for all cash paying customersB c. 3elect 2 current folios. 4erify that credit for the entire stay and incidentals have been pre+authoriMed. !! *-)+ACT#O-IOATIOD DA&) A--I4AA $$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$ *-)+ACT#O-IO)% !-)%IT $$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$

:.*! %iscuss the current policy regarding Pdirect billQ accounts receivables, and the process of recording charges to the !ity Aedger with the ,ront %es &anager. 'ased on the discussion, are the following procedures in placeB a. 3! !redit is pre+approved by the !redit &anager or !ontroller 65 Rat" A(t,ori7ation 7ere all comp9d rooms, food and beverages properly authoriMedB %iscuss the complimentary room approval process. )nsure that ade8uate levels of management approve complimentary rooms. The ,ront %es &anager typically reviews and signs off on a daily -ooms by -ate report. This report lists rooms by the sold rate that in descending order. The -ooms by -ate report ma es it easy to identify comp"d rooms and any rooms sold for a discounted rate. 't is important that the property ma%imi&e their rate and occupancy levels. This is called yield management.

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IV+ FRONT DESK OPERATIONS "#ont2d% .1 $$$$$ $$$$$ $$$$$ $$$$$$ $$$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ b. c. 3A,) %)*O3IT 'OR)3 a. -eview safe deposit box area for0 .) 3ecurity and access to boxes. 1) Ade8uate control over guard ey. 2) !ontrol over unissued boxes and eys. Test 2 boxes to determine that notice of liability limits are posted. -eview several issued safe deposit envelopes and determine if0 .) )nvelopes are properly completed (time, date, attendant 6 guest signature, password). 1) Access slips are properly completed (time, date, attendant 6 guest signature, password). 2) 7aiver of rights and management approval are obtained prior to the time boxes are assigned to non+ registered guests. d. 3afe %eposit 'ox Inventory Obtain most current safe deposit box inventory to determine what has been done to monitor and correct unavailable boxes and accountability for eys.

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-eview ey procedures w5 3ecurity .2. $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ S)( !ODT-OA *-O!)%C-)3 -eview controls and standards compliance over0 .) )mergency eys (electronic), 1) &aster eys (electronic), 2) 3toreroom, shop, and office eys (hard). a5 I# t," '") c,"c'8o(t log !ro!"rl) co+!l"t" ('") 9, ti+" in.o(t, "+!lo)"" na+", att"n ant #ignat(r" an "+!lo)"" #ignat(r") b. c. d. e. Is there control over who can chec out eys (i.e., is there a list of employees authoriMed to chec +out the li8uor storeroom ey)B %oes security verify the identity of the employee chec ing out a eyB %oes security ta e a daily inventory of all eysB -eview the most recent ey inventory. Are emergency eys ept in sealed control envelopes in a safe deposit box, per policy and procedureB )xamine the current control ey envelopes and the last envelope that was opened.

AUDIT WORK

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./.

Travel Agent !ommissions R"$i"% t," tra$"l ag"nt co++i##ion c,"c' r"gi#t"r (i* co++i##ion# ar" !ai -) t," !ro!"rt)) or t," tran#+ittal t,at i# #"nt to c"ntral acco(nting (i* !a)+"nt# ar" !roc"##" c"ntrall))5 S"l"ct : co++i##iona-l" r"cor #5

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-is 0 *olicy and procedure compliance. a. Are commissions only paid to travel agents with an IATA IB b. c. Are commissions only paid for 8ualifying room ratesB %oes management review a summary of commissions to be paid for reasonableness (number of records and total dollars vs. occupancy rates) before they are submitted to central accounting for paymentB

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-is 0 F3As can enter IATA numbers on folios and create commissions for rooms that were not boo ed through a travel agent. d. 3elect 2 commissionable records that have been submitted to central accounting for payment. -eview the reservation in !entral -eservations to ensure that the IATA I and the reservation were input by reservations and not a F3A. e. %oes management compare commission records on a test basis to central reservations to verify their authenticityB Are there other controls in place to ensure commission authenticityB

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!ustomer 3atisfaction 3ome properties offer a money bac guarantee if a customer is not satisfied. A voucher is completed, balanced to the final audit report daily, and reviewed by a member of management. *roper approval of vouchers should be recorded and logged. -eview the prior day9s vouchers and ensure the following0

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a. b. c. d.

Are vouchers signed by the F3AB Is the reason for the voucher documentedB %oes management ensure that the total number of vouchers reviewed match the total number of vouchers recorded in the system for that dayB Are the vouchers0 + -eviewed and signed off by managementB + AoggedB

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V+ NIGHT3IN#OME AUDIT FUN#TION *erson interviewed0 (Csually Dight Auditor) %ate of interview0 O!er!ie0 #otels close their property management system (*&3) on a daily basis and post the revenue transaction activity to the general ledger. The ni45t $dit ($n&tion is in ') &e to ensure that transactions from all systems are properly posted to the general ledger (e.g., room and tax (*&3), food and beverage (&icros), telephone (*'R), movies (On !ommand), par ing valet and health club fees (manual), and credit card transmittal (T in 'an 5)nvoy)). their property n 4ement system (*&3) on a daily basis and post the revenue activity to the general The o67e&ti!e of the Dight Audit wor programs is to ensure that all, and only, revenues earned by the hotel are recorded on the hotel9s boo s. 3pend approximately U to . hour with night audit on &onday night to obtain an understanding of their process. -e8uest the information that you will need for the following day to tie out the transaction postings. Obtain the necessary information on Tuesday and complete the night audit wor program section. The in&ome $dit ($n&tion is in ') &e to compare cash received per the system to physical cash received by the Feneral !ashier. The Income Auditor usually reviews the support for restaurant voids and adEustments, coupons, certificates and ,6' comps. Our o67e&ti!e is to ensure that cash and credit card charges are properly deposited5credited at the ban . ,ES $$$$$$ $$$$$$ $$$$$$ NO $$$$$ $$$$$ $$$$$ !A3# .. Tie ,ood and 'everage *O3 6 *&3 to %aily !ash 3heet5 Feneral !ashier9s -eport (F!-) 1. 2. $$$$$$ $$$$$$ $$$$$$ $$$$$$ $$$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ Tie F!- to ban deposit slip. Trace deposit slip to ban statement.

CRE&IT CAR&S /. Tie ,ood and 'everage *O3 6 *&3 to )nvoy5 TT in 'an . There is a risk that all credit card charges may not be posted to the (ollars in the "ank account accurately and timely. :. Tie )nvoy5 TT in 'an to ban statement.

-OO& !#A-F)3 ;. Tie ,ood and 'everage *O3 to *&3. F)D)-AA A)%F)<. Tie ,ood and 'everage *O3 and *&3 to the Vournal 4oucher for that day. There is a risk that all revenue transaction activity may not be posted to the general ledger. =. N. )nsure that occupancy tax is posted for the day. &! %id the Dight Auditor ade8uately resolve all discrepanciesB

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.?. ,6' -oom !harges -eview room charge chec s. %id the guest sign all chec sB There is a risk that unsigned room charge checks could lead to potential loss in revenue in the event of disputed room charges. %ate -eviewed $$$$$$$$$$$$$$$. ... Open !hec s a. 3! 7ere all open food and beverage chec s closedB b. 3! %id night audit follow up on any open chec sB .1. AuthoriMed AdEustments *! 7ere all paid+outs, miscellaneous charges, adEustments, and rebates properly authoriMedB .2. &! Are all exceptions to steps .. and .1 reported to the %O,B ./. %oes &anagement review envoy to ensure that it ties to F5A posingB .:. %oes &anagement review F!- to ensure that it ties to F5A postingB .;. Dight Audit )fficiency %oes night audit use a spreadsheet to tie out the revenues from the Outlets, -ooms, 'an8uets, etcB To the %+sheetB If they do it manually, why not use a spreadsheet for efficiency and increased accuracyB

T#) ,OAAO7IDF I3 ,O- -),)-)D!) *C-*O3) ODA(

This is an example of a standard Eournal entry that is posted daily to record revenue and its corresponding payment types. D i)8 9o$rn ) Entr8 De6it !ash !redit !ard Fuest Aedger !ity Aedger #redit E:') n tion *ymt for revenues 6 settling guest ledger *ymt for revenues 6 settling guest ledger A5- for guests staying in the hotel A5- for guests that have chec ed out of the hotel 3ales

-oom -evenue

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PROGRAM

,ood 6 'everage -evenue3ales *hone -evenue &ovie -evenue #ealth !lub -evenue Occupancy Tax *ayable 3ales Tax *ayable Fuest Aedger

3ales 3ales 3ales 3ales 3ales Fuest Aedger that guest pays off at chec out

VI+ #ASHIERING 1 ; #o!ered 68 F)o0&5 rt *erson interviewed0 (Csually Feneral !ashier) %ate of interview0 O!er!ie0 3everal employees have cash drawers, including the Feneral !ashier, F3A9s and outlet cashiers. These employees are issued a cash ban to ma e change for guests paying their guest chec s. )mployees sign a contract for the ban that they receive. !ash received from guests is deposited with the Feneral !ashier on a daily basis. -eview policy and procedure. ()3 DO ..&! %o cashiers reconcile cash balances from register activity on a daily basisB

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PROGRAM

1.

Ho$se * n<s K -ef. *olicy and procedure (#ouse 'an s + Issuance, &aintenance and !ontrol) $$$$$ $$$$$ 3T a) Obtain summary of house ban s for the audit month and agree total to general ledger control account. Trace and agree to house ban receipts. )nsure that receipts are voided and ban s reissued after employee vacations.

$$$$$ $$$$$ $$$$$$ $$$$$$

*T b) -eview procedures followed by Feneral !ashier for counting house ban s. -eview for compliance with policy and procedure. 3T c) Obtain cashiers over and short ledger for the audit month and review for fre8uent and excessive variances. %etermine the hotel policy for cash variances and ensure compliance. Agree monthly ledger (for audit month) to expense reported in the general ledger. d) Feneral !ashier9s 'an !ount W *ervasive !ontrolB W &onitoring !ontrolB W If PDOQ to *! or &!, then 3T, verify general cashier9s house ban . !ount should be conducted in the morning prior to the Feneral !ashier retrieving receipts from the drop safe and should include verification of any due bac s in vault. (3ee page /1, I1 K petty cash account). *etty cash is probably part of Feneral !ashier9s ban . !hange -e8uest recorded in the F5A -eview procedure used by the Feneral !ashier for change re8uests from the ban and ensure compliance with policy and procedure. The change re8uest should be recorded in the F5A using the )xchange !hec liability account (!hange re8uests should be made independent of the Feneral !ashier and controls should be ade8uate to ensure that reimbursements for change orders are made timely. The Feneral !ashier should be prohibited from ordering change from the ban ). -eview the ban statement for the audit month and ensure that reimbursements for change orders are made either on the same day or subse8uent day. )valuate dollar amounts of change order re8uests for reasonableness. -eview segregation of duties between Feneral !ashier functions and other accounting duties, in particular, conflicts between accounts receivable duties and preparation of the %aily 3ales -eport.

$$$$$$ $$$$$$ $$$$$$ $$$$$$ $$$$$$ $$$$$$

e)

f)

g) %o cashiers sign cash ban contactsB (If no, what alternative assurance does the hotel have that monies can be recoveredB)

2.H3! %oes the hotel utiliMe a Pdrop boxQ for cashier remittance envelopesB There is a risk that cashiers) remittance envelopes may not be properly safeguarded when dropped for deposit with the *eneral +ashier.

AUDIT WORK

PROGRAM

/.H&! %oes the hotel utiliMe a deposit summary log for the cashier remittance envelopesB Ha.&! Hb.3! Hc.&! %oes the amount of the deposit appear on the logB %o the cashier9s initials appear on the logB %oes a witness initial each dropB

Hd. &! %oes the Feneral !ashier have a witness present when opening the drop safe who also chec s off the log for each remittance envelope removedB $$$$$ $$$$$ :.3T -eview the deposit summary log for the day tested for evidence that the above steps have been performed.

;.H&! %oes the Feneral !ashier verify cash receipts submitted by cashiers to the system cash reportB There is a risk that the cash receipts submitted by cashiers may not be complete or accurate to the system cash report. <.&! Are cashier overages and shortages recorded and monitoredB There is a risk that cashier overages and shortages may not be properly supported and authorized. =.H&! %oes the Feneral !ashier prepare a daily condition report of his fundB &! a. %oes the Feneral !ashier report overages and shortages > T: to the Income Auditor dailyB &! b. Are material shortages reported to the !ontroller9s officeB

N.&T -eview the report of overages and shortages for the day tested. $$$$$ $$$$$ .?.3! *T a. Are the overages and shortages properly supported and authoriMedB

%oes the Feneral !ashier or Accounting manager prepare the ban deposit dailyB a.3T b.3T c.3! Is the deposit divided between receipts and change ordersB Are all chec s restrictively endorsed immediately when receivedB There is a risk that checks may be misappropriated if not restrictively endorsed upon receipt. Is the ban deposit made by an armored car serviceB

AUDIT WORK

PROGRAM

VI+ #ASHIERING "#ont2d% ...*! Are general ledger cash receipt postings reconciled to the daily ban deposit by someone other than the Feneral !ashierB There is a risk that all cash from the general ledger cash receipt posting is not being deposited in the hotel)s bank account. B) %,o+; <<<<<<<<<<<<<<<<<<<<<<<<<<<<<< $$$$$$ $$$$$ .1. *!, *T Are proper physical safeguards and facilities such as safes, restricted areas, etc. fully utiliMed to protect cashB -eview the security of the Feneral !ashier"s office to be certain it is in compliance with policy and procedure. Include in review ade8uacy of alarms, office location, eys to door and door loc s, transaction window, general safe, drop safe and access to safes, i.e. combinations5 eys. 3! Are surprise counts of all funds performed periodicallyB There is a risk that house funds may be used for personal use outside of the workplace. ,re8uency0 a. 3! Are these counts documentedB b. 3! Are differences resolved immediatelyB c. #ow often is the Feneral !ashier9s ban surprise countedB 35b done monthly. ./. a. b. c. #ouse 'an s *ervasive !ontrolB &onitoring !ontrolB 3T If a. or b. is no, then perform a test count of : house ban s. Amount per !ontract Amount per !ount %ifference

$$$$$$

$$$$$

.2.

$$$$$$ $$$$$$ $$$$$$

$$$$$ $$$$$ $$$$$

$$$$$

$$$$$

#ouse 'an

$$$$$

$$$$$

a.3T -eview personnel files to ensure ban contracts are maintained for all cashiers. (3ee II. Asset 3afeguards and 3ubstantiation 6 )valuation, 3tep .2)

.:.*! Are the duties or functions of all persons receiving or directly supervising the receiving of cash completely segregated from0 a. b. -econciling ban accountsB Opening incoming mailB

AUDIT WORK

PROGRAM

c. d. e. f. g. h. i. E. .

*reparing, recording or approving vouchers for paymentsB *reparing, signing, mailing or delivering general or payroll chec sB *erforming wor on accounts payable or any other evidence of indebtednessB *erforming billing functionsB Aging accounts receivableB ,ollowing up on delin8uent accounts receivableB Approving write+offs of bad debtsB Approving city ledger rebatesB *osting general ledger or other general accountsB

AUDIT WORK

PROGRAM

VI+ #ASHIERING "#ont2d% =65 Ot,"r a) Trace daily deposits (: days) from the hotel into the depository account for the last wee of the audit month to determine timeliness of receiving credit. F!- %ate of deposit $$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$ 'an statement date of deposit $$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$ Amount $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$

b) Trace transfer of funds from depository account into operating account to determine timeliness of receiving credit. *)TT( !A3# A!!OCDT .. #ow is petty cash replenishedB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 1. $$$$$ $$$$$ $$$$$ $$$$$ If the petty cash fund is not part of the Feneral !ashier9s ban 0 a. Is the fund surprise counted each monthB b. %oes someone monitor the count results to ensure that they are performedB c. If a. or b. is PDOQ, perform a count of the petty cash fund. The cash plus any petty cash slips should e8ual the fund total. If there are petty cash slips, ensure that they are properly approved and supported (e.g., !.O.%. purchases or emergency expenditures). Guantify the dollar value of petty cash disbursements for the past 2 months by reviewing an A5* disbursement detail for Ppetty cashQ. Is the amount of disbursements reasonableB If disbursements are excessive, identify the nature of the payments and the root cause of these expenses not being paid through A5*, *ayroll, etc. 3elect one of the chec s paid to reimburse petty cash. -eview the support to ensure that it is properly approved and supported.

2.

$$$$$

$$$$$

/.

VII+ HOUSEKEEPING

AUDIT WORK

PROGRAM

*erson interviewed0 (Csually %irector of #ouse eeping) %ate of interview0 O!er!ie0 #ouse eeping cleans the guestrooms and replenishes the amenities. )ach house eeper is assigned a number of units to clean on a daily basis. Cnits typically represent the number of bathrooms in a guestroom (e.g., a suite w5 two bathrooms may be worth two units). The %irector of #ouse eeping schedules staff based on the property9s occupancy. ()3 DO -is 0 F3As may give away rooms for free or may poc et cash for rooms and not enter the sale in the system. To help prevent this, #ouse eeping should report all rooms that have been used but which are not recorded as sold in the system. .. %oes #ouse eeping verify the status (vacant clean, vacant dirty, occupied dirty) of all rooms against a *&3 report (this shows rooms that have been sold)B $$$$$$ $$$$$ 1. Are discrepancies between the *&3 report and #ouse eeping9s inspection reported to others for reviewB ,sually the front desk should review discrepancies to ensure that revenue is being recorded for all rooms being used. The front desk will determine if someone checked in after the -ousekeeping P. report was run or if a room key was issued without being recorded in P. . :5 'riefly describe how discrepancies are reported.

To whomB (Csually !ontroller, Feneral &gr., and ,ront %es &gr.) $$$$$$ $$$$$ /. In8uire, of the individual being notified of the discrepancies, what process is ta en to investigate the discrepancies. 4erify that this process is ta ing place.

AUDIT WORK

PROGRAM

VIII+

A##OUNTS RE#EIVA*LE 1 ; #o!ered 68 ()o0&5 rt (Csually Accounts -eceivable !ler )

*erson interviewed0 %ate of interview0 O!er!ie0 The credit department evaluates and grants credit. Fuests with credit are sent and invoice for their charges vs. paying their bill at chec out. Fuests with credit are referred to as direct bill guests. A5- is responsible for manually entering *&3 city ledger charges into the A5- module. A5- generates and mails invoices. *roperty receivables are typically from direct bill groups, ban8uet events and guests who were not able to pay at chec out. A5- is responsible for collection efforts on outstanding receivables. ()3 DO ISSUING #REDIT .. !redit Application *rocedures *! Are the following procedures being performed regarding applications for creditB There is a risk that credit may be e%tended to guests who do not have the capabilities or potential for payment. a. 3!H !ompleted by the 3ales %epartment and approved by the Accounting %epartment for all new business (e.g., ban8uets, functions, tours, conventions) prior to the event and extension of credit b. 3! -etained for future referenceB $$$$$ $$$$$ 1. 3! a. b. 2. 7hat credit information is re8uired of persons or companies applying for creditB !redit application #otel references

!redit Application Testing a. 3T -andomly select : balances that are aged > ;? days from the Accounts receivable report as of $$$$$$$$$$$$$$$$$$$. 4erify the following0

$$$$$ $$$$$ $$$$$

$$$$$ $$$$$ $$$$$

b. !redit application on file. c. !redit references were chec ed. d. !redit application is approved and the approval is documented on the credit application (e.g., signature of the !redit &anager).

AUDIT WORK

PROGRAM

Fuest Dame

! Out %ate

TAmount

!redit AppB

7ere -eferences ! 9dB

!- App ApprovedB

)vidence of !ollection )ffortsB

AUDIT WORK

PROGRAM

VIII+ A##OUNTS RE#EIVA*LE "#ONT+% $$$$$ $$$$$ /. Aging Analysis 3T !ompare the A5- Aging (@ of current, 2?, ;?, N?, .1? days to the total) for the month+ended $$$$$$$$$$$ and the prior year. -efunding *repaid %eposits Risk: ,nused deposits may not be refunded to guests in a timely manner. ,nclaimed balances may be refunded to someone other than the guest. a. Timely -efund 3T -eview the accounts receivable aging for credit balances. Are there are any credits balances for events that have occurred which should be refunded to the guestB &ethod of *ayment Are balances refunded using the same method of payment which the guest originally used (e.g., chec or credit card)B

:.

$$$$$

$$$$$

$$$$$

$$$$$

b.

$$$$$

$$$$$ ;.

$$$$$

$$$$$

Approval %oes the %O, review and approve all deposit refundsB !redit !ard AdEustments AdEustments can be made to credit cards to refund prepaid deposits, refund guaranteed no+show charges and billing disputes for a settled folio. Risk: +redit card ad/ustment slips may be reviewed and approved by management, however, the ad/ustment may be intentionally posted to an inappropriate credit card 0i.e., employee or a friend)s credit card1. a. *olicy !omplying with procedures memoB b. 3upport Is there documentation to support the reason for all adEustments and which denotes the original form of payment (credit card number)B AuthoriMation Are all credit card adEustments reviewed and signed+off on by the %O,B &onitoring %oes the %O, or Assistant %O, review and sign+off on the Tin'an 5)nvoy transmission report to ensure that all credit card adEustments transmitted were made to the appropriate credit cardB AdEustment Testing 3elect : credit card adEustments from recent Tin'an 5)nvoy reports. -eview the support for the adEustments. )nsure that the adEustment were properly authoriMed and made to the original credit card number.

c.

$$$$$ $$$$$ $$$$$

$$$$$ c. $$$$$ $$$$$ d.

$$$$$

$$$$$

e.

Fuest name

Amount

Aast four digits of the credit card originally charged

!redit card adEusted on the Tin'an 5)nvoy report

*roperly Approved

AUDIT WORK

PROGRAM

<.

-eview of %elin8uent Accounts &! %oes the !ontroller and5or Feneral &anager review the monthly aging of accounts and in8uire as to the status of specific delin8uent accountsB %irect 6 &aster 'illing 3T 3elect 2 invoices that are being mailed out on the day of testing or that were recently mailed. 7ere these accounts billed and mailed within /= hours of chec +outB !hec s -eceived in the &ail Are the following procedures followed for all chec s received by mail (e.g., direct bill pymt sent to the property and received by F3A, 3ales or ,inance Office)B *! Opened by someone other than the cashier, accounts receivable boo eeper or billing cler B a. -estrictively endorsed by the first person to receive the chec B b. 3! -ecorded on a !hec s -eceived log by the person opening the mailB c. 3! Are chec s posted to A5- from chec copies vs. the actual chec paymentB

$$$$$

=.

N. $$$$$ $$$$$ $$$$$

$$$$$$ $$$$$$ $$$$$$

AUDIT WORK

PROGRAM

VIII+ A##OUNTS RE#EIVA*LE "#ont2d% -oom Dumber

Fuest Dame

!hec Out %ate

Invoice %ate

.?. !redit !ard !harge 'ac s Are charge bac s to customer credit cards0 a. b. $$$$$$ $$$$$$ $$$$$ $$$$$ Is there documentation that research was performed to dispute the charge bac with the credit card companyB 7as there a timely response to the credit card company, usually w5in 2? daysB

d. Are all charge bac adEustments reviewed by the %O,B e. 3T -eview charge bac s from the previous month that were written off for evidence of the above procedures.

.:.

!ollection )fforts There is a risk that reasonable attempts may not be made to collect outstanding receivables. a. %o efforts begin 2? days after the account is dueB (To collect T9s faster and resolve billing disputes) b. Are collection efforts documentedB (To show that collections are being done and follow+up) Test 0it5 =>

AUDIT WORK

PROGRAM

VIII+ A##OUNTS RE#EIVA*LE "#ont2d% .;. 3egregation of %uties *! %oes the segregation of duties provide that employees who maintain the detail receivable records do not0 a. b. c. d. e. f. g. #ave access to cashB #ave access to payments received by mailB Approve write+off of uncollectable accountsB Approve or accept reservationsB Approve city ledger rebatesB *erform general ledger functionsB AuthoriMe creditB

.=. Account 7rite+offs 3! Is an PAccounts -eceivable 7rite+off AistQ preparedB If so, are the following procedures being performedB a. &! Are all write+offs reviewed and approved by the %O, and Feneral &anagerB !learly annotated with the reasons for the write+offsB

3! b. $$$$$ $$$$$$ $$$$$ $$$$$

c. !ompare A5- write+offs for the current year vs. prior year. .N. 3T, &T -eview the Accounts receivable 7rite+off list for the month ended $$$$$$$$$$$$ for evidence of the above procedures. Obtain status report for material amounts from !ollection Agencies5Attorneys and review for effectiveness. 1?. 3! 'ad %ebt -eserve !alculation. Apply !orporate guidelines in determining ade8uacy of reserve. 11. 3T Are all adEusting revenue entries to the city ledger approved by the !ontrollerB

$$$$$$

$$$$$

VIII+ A##OUNTS RE#EIVA*LE "#ont2d%

AUDIT WORK

PROGRAM

12. <<<<<< $$$$$ a.

Other -eceivables )mployee 3! -eview accounts of officers and employees to ascertain that transactions therein have been properly approved and that balances have not been outstanding beyond 2? days. &iscellaneous 3! -eview other miscellaneous receivables to determine whether they represent current items with a reasonable expectation of collection. Trade+out5 'arter Agreements 3! %oes the #otel engage in Trade+out5'arter agreementsB If yes0 .) Are these agreements recorded in the general ledger in compliance policy and procedureB 1) %oes the F& approve all Trade AgreementsB 2) Are all Trade Agreements supported in writing specifying the nature and extent of services to be awardedB

$$$$$$

$$$$$

b.

c.

1/. !alculate the %ays 3ales Outstanding (%3O). %3O L Average A5- for the month (&onthly sales 5 I of days in the month)

IX+

PUR#HASING (Csually *urchasing &anager or Agent)

*erson interviewed0 %ate of interview0

AUDIT WORK

PROGRAM

,ES

NO .. *urchase Orders for Don+,ood *! %oes the hotel utiliMe a purchase order for all purchases other than food purchasesB a. *! If not, is there a dollar amount at which purchase orders are re8uiredB T$$$$$$$$$$$$$$$$$

%ollar limit 1.

,ood *urchases *! Are purchase orders utiliMed for food purchasesB a. b. c. *! If not, are all perishable food orders placed only by the *urchasing Agent or !hefB F'*0 Are all orders made on+lineB 3! Are all storeroom orders approved by the ,ood and 'everage %irectorB

$$$$$

$$$$$

2. /. :.

Is there a document created to show that the purchase was approved (consider phone, fax 6 on+line orders)B 3! Are DOD+ ,ood 6 'everage purchase orders approved by the Feneral &anagerB (,or purchases re8uiring a *O) Test 2 *.O.s for proper approvals. %ept. &ng. %O, F& *urchasing

*.O. I

AUDIT WORK

PROGRAM

X+ RE#EIVING *erson interviewed0 (Csually -eceiving !ler ) %ate of interview0 ,ES NO FOR ALL PUR#HASES. NON ;FOOD: ..3T %oes the hotel have a central receiving areaB Inspect the receiving doc and observe the receiving department operations. !ompare receiving log with invoices for the current day (the day of the interview). 1. %oes the receiving cler 0 3! a. 3ign all receiving recordsB

3! b. !ount and inspect the 8uality of all cartons or boxes received and record this information on the receiving recordB 3! c. &atch purchase orders to the merchandise receivedB !opy order sheet compared to report0 +price +8uantity Risk: Receiving may accept items for receipt that were not ordered, priced incorrectly, or incorrect 2uantities. 3! d. Dote on the receiving cler 9s copy of the purchase order that merchandise has been receivedB 3! e. Indicate purchase order numbers on the receiving recordB 3! f. -econcile differencesB %ocument the procedures below.

$$$$$$ $$$$$

$$$$$ $$$$$

2. /.

3! Are pac ing slips forwarded to the Accounting %epartmentB F'*0 Are all items received in the systemB %oes A5* match against an electronic receiverB

FOR FOOD PUR#HASES $$$$$ $$$$$ :. 3! Is a list of unmatched receivers and open purchase orders sent to the Accounting %epartment at month endB %escribe the procedures below.

XI+

STOREROOM RE/UISITIONING

*erson interviewed0 (Csually 3toreroom !ler )

AUDIT WORK

PROGRAM

%ate of interview0 ,ES NO .. 3! Are all re8uisitions of goods from the storeroom approved by a department head. If not, who approves the re8uisitionsB a. b. c. 1. $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ /. !hef (for all food re8uisitions) #ead bartender (for all beverage re8uisitions) Other

-eview procedures for control over re8uisitions. *T a. -eview re8uisitions noting that they have been properly prepared and authoriMed. 3T b. )nsure that the persons issuing and persons receiving the merchandise have signed re8uisitions. Risk: 3ithout signatures, ownership of items is left unclaimed. *T c. If there is a storeroom re8uisition loc box, review the procedures. 3T %etermine that par stoc s are established in each beverage outlet and an inventory is ta en monthly and any discrepancies noted and followed up by the ,ood and 'everage %irector. 3T %etermine if a X'ottle for 'ottleX exchange program is in effect. 3T %etermine how exchanged bottles are controlled prior to recycling to prevent reuse in the exchange program. 3T %etermine that a li8uor label system is in effect. #ach outlet should have an outlet sticker number and that sticker should be present on all of the bottles being used in that outlet. ,or two outlets, verify that all the bottles behind the bar have the appropriate stic ers. This control helps ensure that all sales are recorded. There is a risk that a bartender could bring in a bottle of li2uor from outside of the hotel, sell drinks and pocket the cash.

$$$$$ $$$$$ $$$$$

$$$$$ $$$$$ $$$$$

:. ;. <.

=.

*! Are the storerooms loc ed when the cler is not presentB %ocument the nature, fre8uency and how exceptions are cleared below.

N.

Tour the primary storeroom areas and observe for the following0 *T a. %o the security measures seem appropriate and ade8uateB

AUDIT WORK

PROGRAM

.?. $$$$$ $$$$$ $$$$$ $$$$$

Inspect the food and beverage storeroom and perform the following0

a. *T %etermine that a current authoriMed signature list is posted. b. 3T )nsure that all stoc is priced when put in storeroom and that it is properly rotated.

... Test 2 re8uisitions for proper approvals. -e8uisition I Issuer -eceiver %ept. Approval AuthoriMed 3igner

XII+

A##OUNTS PA,A*LE

*erson interviewed0 (Csually Accounts *ayable !ler ) %ate of interview0 ,ES NO Risk: 'nvoices may be paid for purchases not approved.

AUDIT WORK

PROGRAM

..&! %oes the accounts payable cler 9s review of invoices include0 3! a. 3! b. 3! c. 3! d. 3! e. 3! f. 3! g. The 8uantity was chec ed against the purchase order and receiving reportB %iscounts ta en where applicableB The unit price was chec ed against the purchase ordersB 3ales or use tax paidB The extensions on the invoice were chec edB Approval by appropriate department headB Are these review steps documented (e.g., approval stamp)B %ocument the nature, fre8uency and how exceptions are cleared below.

$$$$$

$$$$$

1.

&! %oes the %O, or Accounting &anager review for appropriate account codingB

2. %escribe controls over vendor master fileB Are they ade8uateB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ /. &! Are open purchase orders, unmatched receiving records and unpaid invoices reviewed monthlyB If not, how oftenB :. %ays payable outstanding L

(%isbursements for the month)

2? %ays

Avg. A5*

$$$$$

<<<<<

3afeguard !hec 3toc *! Is access to critical forms (i.e. chec stoc ) and records limited to authoriMed personnelB Risk: ,nauthori&ed access to check stock could lead to misappropriation of assets. =. 3! Are invoices mar ed PpaidQ or PcanceledQ when they are paidB Risk: (uplicate payments may be made if not marked 4paid5 or 4cancelled5. N. )nd of &onth !losing *! Are there documented procedures for cutoff and end+of+period closingB Risk: 6iabilities may not be accurately stated at month end.

;.

AUDIT WORK

PROGRAM

.?.

%isbursement Testing 3T 3elect 2 chec s issued during the month being examined (if subse8uent disbursements will be tested, then use the chec s selected for the subse8uent disbursement testing). 4erify that the payment is supported by an approval, invoice, purchase order, receiver, account coding and cancelled invoice. ,or managed properties, review policy and procedure.
!oding -eviewed Account Invoice3upporting -eceiving -eport Order*urchase Approval Invoice!anceled

!hec Dumber

%ate

4endor

Amount

... $$$$$ $$$$$ $$$$$ $$$$$ .1.

4endor &aster ,ile Are there ade8uate controls over the vendor master file and the addition of new vendorsB F-OC* !O&&I33IOD3 %etermine proper signatures5approvals (including advance approvals5other notifications where appropriate) are obtained where re8uired for Froup !ommission payments as set+ forth in policy and procedure. ,or this selection, perform based on actual disbursements, which should be included in the detail trial balance for group commission expense.

AUDIT WORK

PROGRAM

A5* Accrual The ob/ective is to review the procedures used at month end to accrue unrecorded liabilities. $ccrual testing is necessary to support e%ternal audit)s financial statement assertions. .2. *! #ow is the accrual preparedB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$ *! Is the accrual reviewed for reasonablenessB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$ *! 7ho reviews the accrualB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ R"$i"% #(!!ort *or #t"!# =>8=65 I* #(!!ort i# not a "/(at", !"r*or+ #(-#"/("nt i#-(r#"+"nt t"#ting (9=?)5 3ubse8uent %isbursement Testing 3! *erform a test of subse8uent disbursements for the month+ended $$$$$$$$$$$$$$$. 3elect : disbursements. &ost s5b engineering expenses. -elates to $$5N= -elates to $$5N= Accrual (Over)5Cnder AccruedAmount

./.

.:. =65 .<.

!hec Dumber

*ayee

Amount

XIII+ PA,ROLL *erson interviewed0 (Csually *ayroll !ler ) %ate of interview0 ,ES NO .. Is the property using a time eeping systemB 3wipe cards for time cloc sB

AUDIT WORK

PROGRAM

a.

3! Is the department head re8uired to sign or initial the time reports, indicating his approvalB %ocument the nature, fre8uency and clearance of exceptions below. Risk: #mployees may not enter their time report correctly on time reports.

1. $$$$$ $$$$$ 2.

/. $$$$$ $$$$$

*! Is access to critical forms (i.e. chec stoc ) and records limited to authoriMed personnelB Risk: "lank checks may be lost, stolen, and7or misplaced. *! Is the distribution of payroll chec s performed independently of the *ayroll %epartmentB Risk: The person controlling payroll and timekeeping could set up a ghost employee which may go undetected. *! Is access by the payroll cler to signed payroll chec s prohibitedB

:. *! 'ac ground Investigations Are bac ground investigations performed on all ey employees that handle cash or have access to guestroomsB -eview the investigation documentation for three employees (Feneral !ashier, F3A and house eeper). ;. 3! #as the hotel established clearly written statements of criteria for indirect compensation plans (i.e., holiday pay, bonuses, vacations, profit sharing, etc.)B

XIII. PA(ROLL ;. 3elect 2 employees from a recent payroll period and complete the following. Test should be performed in the #uman -esources department for employee filesY documentation of review is to be included in file of employee in compliance with policy and procedure. Risk: $ll re2uired personnel file forms may not be maintained on file in the personnel department. 3T a) 4erify against personnel file0 i) )mployee name, ii) Dumber, (iii) %epartment, (iv) *ay rate, (v) *roper approval for hire, and (vi) !omplete I+N ,orm (If I+N selection includes X-esident AliensX, ensure that wor documents have not expired. I+N forms must be filed separate from employee personnel files. 3T b) 3T c) 3T d) 3T e) 3T f) $$$$$ $$$$$ 3T g) Agree time paid to time card or time records. %etermine that ,ederal, state and local taxes are being withheld. -eview timesheet or other documentation and ensure department head approval for hours paid. %o the pay rates agree between personnel files and vacation accrual detailB Is the vacation ta en on the vacation accrual detail supported by vacation re8uests signed by the employeeB 7as a bac ground chec performed on anyone with access to guestrooms or cashB *ay -ate I+N!ompleted Time paid to Time card 4acation 3upported 7ithheldTaxes for #ireApproval Approval for hours *ay rates agree %epart.

$$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$

$$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$

$$$$$ <<<<< $$$$$

$$$$$ <<<<< $$$$$

)mployee Dumber

*erformed'ac ground !hec

Dame)mployee

XIII+ PA,ROLL =. *! %ocument the procedures of the %O,9s compensation.

a.*T

Are we satisfied their compensation has been properly authoriMedB

b.*T !ompare the authoriMed compensation to a recent payroll register. %o they agreeB N.3! Are total chec s written reconciled to the payroll register totals each payroll periodB .?.3!, 3T Is an independent distribution of paychec s performed for each department on a periodic, surprise basisB If so, review the pay periods in the month tested for evidence of an independent distribution (evidence should include verification of identification and employee signature.). ...3T %ocument the handling of ban8uet gratuities and tips. %etermine that Administrative Fratuities have been approved in accordance with policy and procedure. -eview the gratuity distribution wor sheets for the audit test period including ban8uets (verify compliance with policy). !ompare distributions to amounts collected per the general ledger activity.

XIII+

PA,ROLL "#ont2d% .1.3T 3elect : ban8uet chec s and trace the tips per employee (for 1 employees per chec ) to the appropriate period9s payroll transmission report and subse8uently to the payroll register (the day of interview).

'an8uet !hec

)mployee

Tip per 'an8uet !hec

Tip per 'an8uet Tip 3preadsheet

Tip per *ayroll -egister

.2.*!, *T

In8uire into in+house bonus programs. )nsure that programs are ade8uately approved by management and appear reasonable. 'ased on the type of program, consider testing of authoriMation of payouts.

./.

-eview monthly audit report of payroll master file changes. %etermine if the hotel is able to use the Ppayroll overrideQ function for temporary pay rate changes that do not appear on the master file audit report. If so, determine if ade8uate controls exist to prevent potential unauthoriMed changes from being processed without detection.

Accruals for *ayroll 6 4acation The ob/ective is to review the procedures used at month end to accrue unrecorded liabilities. $ccrual testing is necessary to support e%ternal audit)s financial statement assertions. .1. #ow is the accrual preparedB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ .2. Is the accrual reviewed for reasonablenessB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ ./. 7ho reviews the accrualB $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ .:. -eview accrued payroll, accrued vacation, payroll taxes and all other related payroll liabilities. !onsider earned versus accrued, monitoring method, etc. and compliance with policy and procedure. .:. Guantify the number, dollar, and reason for chec s cut at other than regular payroll times. .;. Guantify the number, dollar, and reason for 3pecial !hec s. .<. Guantify the number, dollar, and the reason for employee )xpired !hec s.

XIV+

In(orm tion Te&5no)o48

*erson interviewed0 %ate of interview0 ,ES NO .. #ardware -eview security of area where bac office computer and all associated hardware is located0 $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ 1. a. b. c. *! Is physical access to the computer room5!*C controlledB *! Are there ade8uate fire protection and extinguishing devices in the computer room5areaB *! iii) Is there ade8uate protection against power surges and failuresB

3oftware a. *!, *T -eview procedures for bac ing up files. %etermine that all bac office computer files are bac ed up on tapes daily and maintained in a fireproof safe at a location removed from the computer room. b. *! %etermine if other computer systems used in the accounting function (including significant *! applications) are bac ed up on a regular basis and stored in a safe location. 'riefly describe. R' 8: 9. There may not be safeguards over computer hardware. :. There may be unlicensed software on employee P+)s 0e.g., employee load software from home1. The property could be assessed fines for unlicensed software. T)3T0 *! Investigate and describe briefly the procedures for software protection and monitoring personal computer systems for unauthoriMed software use. !omment on completion of hardware inventory, inventory of installed software, software license inventory and comparison of license inventory to installed software. Indicate date of last software inventory, policy and procedure re8uire this procedure to be performed twice a year. 0re:uency of *ackup *ackup Stored SafelyB

$$$$$

$$$$$

$$$$$

$$$$$

c.

0unction ,ront Office (*&3) 'ac Office (A5*, FA, )T!) *O3 *ayroll Time eeping #uman -esources -eservations 3ales 6 & t9g

System

XV+ MIS#+3 OTHER *erson interviewed0 ????????????????????????????????????????????????????????????? %ate of interview0 .. ??????????????????????????????

3tate 6 !ity Taxes )xamine state and city tax returns and the related payments. Investigate any significant variances between amounts collected and amounts paid, i.e. review for adEusting entries related to payments. In8uire into the status of any recent related audits and results. -eview reconciliations for reasonableness (i.e., investigate such items as tax+exempt sales and support, inclusion of all taxable sales, etc). )nsure compliance with policy and procedure. )nsure that sales taxes are applied in compliance policy and procedure (all beverage sales, except ban8uet cash bars, should have sales tax added to the price.) *roperty Tax )xamine property tax payments5billings and compare to accrual for reasonableness and compliance with policy and procedure. )nsure that all payments are made on time and that no penalties have been incurred. *roperty &ortgage If the hotel has loans or a mortgage on the property boo s and the hotel corporation is responsible for payments, ensure that debt service payments are made in a timely manner and agree to loan documentation.

1.

2.

XV+ MIS#+3 OTHER "#ont2d% /. &ADAF)&)DT AF-))&)DT (where applicable) Obtain the latest management agreement, amendments to the contract and the @AAA Manag"+"nt an Franc,i#" F"" E2!"n#" Sc," (l" . 'f the property does not have a management fee schedule, this should be noted in the report. a) 3pecial Aegal5Accounting Treatment %etermine if the management contract re8uires special treatment of any legal and5or accounting issues. If so, ensure that the property is handling the re8uirement appropriately. !onsider0 i) 'everage operations, retail space, or other special provisions, including funding of accounts (e.g. capital reserve, potential limitations on bill bac s, etc). ii) %etermine if additional audit procedures are re8uired. 3ummariMe in the wor program any contract sections that were reviewed as part of the audit. 7ritten !ontracts )nsure that contracts designate the property owner as the *-ID!I*AA and corporate as an AF)DT. )xpenditure Approval )nsue that property expenditures are appropriate ( not the owner)s unrelated e%penses passed through the property ) and approved. ,ee !alculation -eview support (e.g., report of operations) for the @AAA Manag"+"nt an Franc,i#" F"" E2!"n#" Sc," (l" . Tie the support to the schedule and recalculate the fee. Test should include both basic and incentive fees. )nsure that the fee is calculated based on the formula specified by the management agreement. 'nclude the schedule and your test work in the workpapers. ,ee *ayments

b)

c)

d)

e)

)xamine the chec copies for the 1??? fee payments. )nsure that all payments were made and tie to the schedule.

XV+ MIS#+3 OTHER "#ont2d% <. *-O*)-T( AD% )GCI*&)DT + -ef.+ policy and procedure Obtain property and e8uipment subsidiary ledger (cost and accumulated depreciation) and agree balances to various general ledger control accounts for the audit month. -eview reconciliation of any !onstruction in *rogress account and other ,ixed Asset accounts. Agree to summary balance sheet total. )nsure timely transfer of completed proEects from !I* to the appropriate fixed asset accounts. &a e a selection of additions and retirements and ascertain compliance with policy and procedure. Ascertain that the property accounts and reserves for depreciation have been properly relieved for items disposed of or abandoned. Test computation of depreciation expense for 2 items or 2 asset groups. -eview *roperty Operation expenditures from the detail general ledger (audit month) for any large and unusual items that should have been classified as capital expenditures. -ecording )8uipment ,ees )nsure that )8uipment fees are properly recorded, per policy and procedure. !orporate e8uity :.@ to NN@, )8uipment fee is general and administrative expense. !orporate e8uity :?@ or less, )8uipment fee on capital items should be capitaliMed.

Add or -etire

Item

!ost

Agrees to Invoice

*roperly !apitaliMed

If -etired, is depreciation and item removed from boo sB

Dis&$ss 0it5 En4ineers

;. &aintenance5 3ervice !ontracts a) Obtain the Accounting department9s schedule or tic ler file of maintenance contracts. 3e want to ensure that an organi&ed schedule is kept of all the contracts, e%piration dates and the status of each contract)s certificate of insurance. 'nclude the schedule in the workpapers. To ensure that the contract schedule is complete, review the repair 6 maintenance expense account detail. %etermine if payments are being made for contracts that are not listed on the contract schedule. 3elect : maintenance contracts from the maintenance contract tic ler file. $ttach a workpaper for the following steps. i) !urrent !ontract )xamine the contract. Is the contract currentB

b)

c)

ii) 3tandard !ontract 7as the standard !orporate &aintenance !ontract usedB If a standard contract was not used, did !orporate Aegal review the contractB iii) !ertificate of Insurance (!OI) %oes the property have a current !OI from the contractor, where applicableB %oes the !OI list as additional insured parties, the hotel corporation and the name of the owner5Eoint venture partnerB (If there are current !OI9s that were previously obtained, they are correct if the list Zthe above underlined party[ as additionally insured). Foing forward, all !OI9s should list the hotel corporation as additionally insured. iv) !ompetitive 'ids 7ere competitive bids obtained before the current contractor was selectedB -eview documentation to ensure that this process is in place. +ompetitive bidding is e%tremely important to ensure that contracts are for the best price and 2uality, and negotiated with integrity.

XV+ MIS#+3 OTHER "#ont2d% <. !OD!)33IODAI-)3, 3TO-) T)DADT3 AD% OT#)- + -ef. *olicy and procedure Obtain leases and5or lease abstracts and ma e a selection for testing. -eview wor sheets and calendar maintained by accounting staff relating to store rentals, concessions, and vending machines. *erform the following0 a) b) !ompare rent per lease agreements to reported revenue. !ompute percentage rentals, where applicable, using sales reports from tenants. If @ rent, determine if lease audits are conducted annually or that a certified statement of revenue has been received. (#otel may use sales tax returns and documentation of payment as compensating control). !ertificate of Insurance (!OI) should be current and should list as additional insured partiesY hotel corporation and name of owner5Eoint venture partner, if applicable. If the property is responsible for collecting cash from vending machines, ensure that controls over eys and cash are ade8uate. There is a ris that cash for machines may not be controlled.

c)

d)

XV+ MIS#+3 OTHER "#ont2d% = !A*ITAA )R*)D%ITC-)3 3elect 2 !ap )x *roEects from the current or prior year a. 'udget )xpenditure -e8uest (')-) -eview the signed ')- for each proEect. )ach proEect must be approved by0 \ T:?,??? by Feneral &anager \ T.??,??? by Area %irector. > T.??.??? by 3enior 4ice *resident or *resident. 3tandard !ontract ,or the 2 contractors selected in step b., ensure that a standard hotel contract was completed. *erformance 'onds )nsure that a performance bond has been obtained for any contractors which will be paid > T.??,??? as part of the 2 proEects selected. !ertificate of Insurance (!OI) )nsure that there are current !OIs for each of the contractors selected in step b. )nsure that !orporate 6 the property are listed as additionally insured parties on the !OI. (If there are current !OI9s that were previously obtained, they are correct if the list Zthe above underlined party[ as additionally insured). Foing forward all !OI9s should list !orporate as additionally insured.

b. c. d.

e. !ompetitive 'ids )nsure that at least 2 sealed competitive bids were obtained for the contracts selected in step b. if they were > T1:,???. 7ere the bidder9s references and financial status chec edB -eview documentation to ensure that these processes are in place.

XV+ MIS#+3 OTHER "#ont2d% N. )DT)-TAID&)DT, *-O&OTIOD AD% &ADAF)-"3 )R*)D3) + -ef. *olicy and procedure K 2 largest for the (T%. ,or 2 people (including live+in) a. (,or all selections made that include room folios from hotel properties, ensure that fre8uent guest points are not obtained, per policy and procedure. b. -eview a selection of expense reports from the current year for the Feneral &anager, %irector of 3ales and !ontroller for compliance with policy and procedure. Dote this selection should be made from accounts payable disbursement reports, i.e. each employee should have a vendor history, need to confirm that you have all disbursements to ma e selection. c. 3elect several expense accounts for other employees and review for proper approval (Feneral &anager), documentation, reasonableness and compliance with policy and procedure. d. Obtain Feneral &anager"s or other live+in personnel per8uisite reports since last audit and review for reasonableness and compliance with policy and procedure. e. &a e a selection of disbursements from the Feneral and Administrative category for relocation5moving expenditures and ensure that procedures are in compliance with policy and procedure. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

XVI+

GENERAL *OOKS

(es

Do Vournal )ntries .. -eview 2 standard Eournal vouchers and 2 adEusting Eournal memos for the month being tested. a. %ocument the Eournal entries reviewed5 b. 7ere the entries completed on standard Eournal entry formsB c. 7as support for the Eournal entry attached to the formB

d. 7ere all Eournal entries reviewed and approved by the !ontroller (or Asst. !ontroller)B

1. $$$$ $$$$ $$$$$ $$$$$

Account -econciliations A. 4erify that )) balance sheet accounts have been reconciled. -econcilations should be0 a. Timely b. -eviewed and approved (signed) by the %O, or Asst. %O,. '. ,or the following account reconciliations (!ash, A5-, A5*, !redit !ards), ensure the following0 + That they were prepared independently of the function (segregation of duties) 6+ That all differences for unreconciled items are addressed &+ That the reconciliation ties to the F5A and the subsidiary ledger, with support d+ -eview and approved by %O, or Asst. %O,

A&&t+ Re&on&i)i tion !ash A5- !ity Aedger A5* !redit !ards 2. 'an -econciliations

6+

&+

-eview ban reconciliations and related cash accounts (with the exception of house ban s) and perform the following0 (Include copies of the ban reconciliations in the wor papers, cover page only). (use your Eudgement to determine scope level. ,or example, do not loo at every reconciling item.) a) -eview and examine supporting detail and trace to general ledger. Agree total of cash accounts reviewed to summary balance sheet total.

b) ,or outstanding chec s0 Investigate (by reference to supporting detail, proper authoriMation, etc.) chec s of material amount that have been outstanding more than two months to see that they represent bona fide reconciling items.

c) ,or deposits in transit at reconciliation date0 (i) Trace amounts from cashboo to subse8uent ban statement or deposit receipt. (ii) If in+transit periods were unreasonably long, investigate delays and explain. d) ,or unrecorded items at reconciliation date0 (i) Trace deposits and chec s to ban statements and to cashboo as to dates and amounts. (ii) )xamine support for all other reconciling items (such as service charges, ban errors) and trace to boo s. e) Ascertain that all reconciling items (such as boo or ban errors, corrections, and unrecorded deposits and chec s) that cleared the ban were properly accounted for, and were of a routine nature rather than the result of a brea down in procedures.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

XVII+

M,STER, SHOPPING

FOR DIS#USSION PURPOSES ONL, Cpon arrival to the property or on the first day, visit some of the outlets at the property (i.e. gift shop, restaurant). Aoo for deficiencies in controls and service. %ocument finding below. 3elect at least three (2) outlets )xamples of what to loo for0 answering phone within three rings W house eeping service bathroom cleanliness W answering 8uestions5challenges room service accuracy 6 timeliness W amount of time to chec you in5out Outlet visited %ate visited ,indings

A''endi: @

Internal Audit Department

Satisfaction Survey
;OT#: $ll information will be kept in the strictest confidence. <our valuable feedback will assist 'nternal $udit in improving our services. Please answer all 2uestions as accurately and ob/ectively as possible. Return to: Internal Audit Director of CFO FAX: If you have any comments that would improve our operations to etter serve our company! please utili"e the space given# $ou may attach additional sheets as needed# Please provide e%planations for any items rated & or '#

#otel Dame$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ -eport Issue %ate$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ F& 6 %irector of ,inance$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Auditor(s)$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

4. Please check appropriate bo

Audit Planning and Scheduling .. 1. The Feneral &anager and %irector of ,inance were notified of the audit three wee s in advance. Audit scope and obEectives were clearly communicated. Stron4)8 Dis 4ree . . 1 1 Ne$tr ) 2 2 / / Stron4)8 A4ree : :

Audit Performance .. 1. %isruption of normal activities was minimiMed. !ommunication throughout the audit was good and audit issues were brought to &anagement9s attention in a timely manner. The audit was performed in a professional manner. . . 1 1 2 2 / / : :

2.

Stron4)8 Dis 4ree

Ne$tr )

Stron4)8 A4ree

/. :.

The auditors were nowledgeable of business and subEect under the audit. The audit addressed the concerns of the Feneral &anager and %irector of ,inance.

. .

1 1

2 2

/ /

: :

Audit Reporting .. 1. The information contained in the audit report was accurate. A draft of the audit report was presented to the Feneral &anager and %irector of ,inance in a professional and timely manner. The audit was helpful and provided value to the management of the #otel. . . 1 1 2 2 / / : :

2.

+omments and ideas for improvement: $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

#om')eted 68: D te:

??????????????????????????? ???????????????????????????