Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.

sg

Audit Program: Food & Beverage Revenue Cycle Objective: Prepared By Date To ensure revenue from sale of food and beverage is correctly and completely accounted for. : _______________________ : _______________________ Audit Steps 1. System Documentation Document the procedures of the F&B revenue cycle for the following: restaurant (specialty/ la carte) restaurant (buffet) breakfast lounge service banquet & conference bar beverage sales room service Evaluate the adequacy of controls. Ensure there is a designated restaurant cashier and that guest billing is mechanised. Reviewed By : ________________ Date : ________________ WP Ref.

Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg

Audit Program: Food & Beverage Revenue Cycle Audit Steps 2. Guest Orders/Captain Orders Ensure there is proper control over the guest or captain orders. Ensure that the guest or waiter orders are serially numbered, matched to the respective guest bill and are properly accounted for at the end of each shift. Determine whether the guest order is rubber-stamped by the cashier before forwarding to the kitchen or bar to dispense the food and/or beverage. Ensure no goods are issued until the chef or barman is in receipt of guest order/waiter order stamped as received by the cashier. WP Ref.

3. Guest Bills Check the guest bills to the respective guest order and the menu price of the items ordered. Ensure accuracy of billing. Determine the procedures for posting bills to guest room charges. Determine whether the POS system is linked to the hotel system.

4. Buffets & Lounge Service Ensure the guest orders are controlled by the host or cashier as opposed to servers. Ensure the number of covers and table number is recorded on the guest order prior to seating guests. Ensure the guest orders are settled by the Cashier. Ensure that the guest orders are serially numbered, matched to the respective guest bill and are properly accounted for at the end of each shift.

5. Bars Perform a bar observation when you first arrive on property, observe the following: Checks are presented to guests after the order has been 2

Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg

Audit Program: Food & Beverage Revenue Cycle Audit Steps recorded in the register and prior to payment. Room key or credit card is obtained from guests running a tab WP Ref.

6. Room Service Ensure that the waiters dockets recording room service orders are serially numbered and properly controlled. Ensure the waiters dockets contain critical details like room number, description and time of service and guests signature. Ensure the waiters dockets are matched to the food release docket from the room service kitchen and are properly accounted for at the end of each shift Test check the billings and ensure they are charged correctly to the respective guest.

7. Voids Observe and document the security of POS manager's keys for processing voids. (i.e., key is not left in register, kept in drawer at register, etc.). If key controls are lax, expand testing by performing the following: Obtain the final register reports for two days with voids and perform the following: Trace the void total per the final reports to the actual void checks. Sight evidence of management review.

Review void tickets to ensure voids are adequately explained.

8. Banquet & Conference Review the reservation procedures. Ensure detail banquet instructions lists are prepared prior to each function. It should include the following: weekly list of functions for staffing purposes and F&B orders; daily list giving details of locations of functions, type of 3

Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg

Audit Program: Food & Beverage Revenue Cycle Audit Steps function, the numbers attending and the manager dealing with each function; house list circulated to personnel dealing with items such as special lighting, microphones, table linen, overhead projector etc. WP Ref.

Select 2 banquets and review the correspondence between the hotel and the banquet organiser noting the agreement of date, start and finish times, number and price per person plus any fixed charges. Ensure the events were recorded on the Functions Diary with the above details together with an analysis of the facilities required. The entries in the diary should have an authorising signatues. Each banquet should have a file where copies of the requisitions from the relevant store is kept. The quantities should be reconciled that recorded on the Functions Diary. Review the usage of casual labour and the number of full-time or part-time staff deployed for the banquet. Review the reasonableness. Check the correctness of billing.

9. Sale Of Swill (food scrap) Determine how swill are handled. Evaluate the adequacy of control.