Professional Documents
Culture Documents
Hotel Night Audit Program
Hotel Night Audit Program
W/P
REF.
H-1
1. Obtain the most recent month's financial statements and management
reports for hotel operations. Extract figures for monthly average
occupancy, average room rate, and room revenue. Obtain explanations for
material fluctuations from budget.
2. Obtain the updated hotel comparison analysis maintained by the hotel
director and compare hotel performance with competitor and industry
averages. Obtain explanations for material deviations for room rates and
what is being charged by competitors for the same period. Determine
whether management explanations are reasonable and attach a summary
to the working paper.
3. Inquire how room rate maintenance is performed and updated in the front
office reservation system, and how overrides are changed, controlled, and
deleted. In summary form, prepare the observations and document
observed control weaknesses in the working papers.
H-2
DONE
BY
DATE
NAME OF PROPERTY
2. Test 10 of the quoted room rates in the daily reservation report to the
reservation forms. Ensure the reservation forms or computer entries are
signed by the reservation clerk, or that some other documentation exists.
Also, ensure that proper reservation forms are prepared for all reservations
made.
3. Inquire from the credit department how customers' credit limits/credit
standings are taken into account when accepting reservations for hotel
rooms.
4. Check the reservation file to ensure that written confirmation is received for
travel agent guests telex, fax, or e-mail form and attached to the
reservation form, documenting any noncontracted rates extended to the
agents/guests.
5. Compare a sample of 10 suspended credit limit correspondence memos to
the reservation system to ensure that all suspended accounts are updated
into the system.
H-3
H-4
NAME OF PROPERTY
ensure that management responded properly.
H-5
H-6
2. If material, or if unusual items are noted, test for proper controls, including
review of the high balance report and Telecheck procedures.
3. Trace the total of the aging report to the general ledger and the A/R recap
report.
4. Review write-offs, and if material, review selected write-offs for adequate
support, proper collection efforts, proper approval, and reason for write-off.
Be alert to consistent causes (e.g. front desk personnel failure to follow
established hotel policies).
H-7
NAME OF PROPERTY
items to the bank account, and the person who posts the checks
received to the A/R ledger.
Copies of logs are filed chronologically for proper recordkeeping
purposes.
H. HOTEL LAUNDRY
1. Verify that billings from the laundry contractor are checked to
delivery/service records provided by the contractor, and unit prices are
agreed to the services agreement with the contractor. Ensure the
delivery/service record is verified by hotel staff.
2. Trace a sample of laundry contractor billings to guest billings for
laundry services.
3. Trace guest billings to the daily sales transactions report or similar
document, and the guest ledger to ensure that revenue has been
captured in the accounts.
4. Ensure that "free of charge" laundry services, if any, outside of the
ordinary linen provided to guests, staff, and outside parties (e.g.
entertainers) are in compliance with hotel policies and procedures.
5. Document other observations and concerns regarding the laundry
operation within the facility.
H-9
3. For deposits applied at the front desk, main cage, vault, or mail
receipts, agree a sample of 10 transactions in the most recent month
to the general ledger.
4. Trace the check to a bank deposit slip.
5. Obtain a copy of the guest folio and verify the deposit was applied to
the correct guest's account.
6. Review the general ledger control account for any adjusting journal
entries to the advance deposit account and explain the nature of
adjustments.
7. Obtain a copy of the finance department's reconciliation of the
NAME OF PROPERTY
advance deposit account and determine that all reconciling and
outstanding items are reasonable.
8. Determine if there are stale items in this account that should be written
off.
H-10a
2. Select the most recent month of complimentary activity for detail testing
and perform the following:
H-10b
3. Select one day's transaction report and obtain comp charges for the day.
Agree actual comp charges to transaction total. Review each comp folio
and verify the following:
H-10c
H-10d
6. Obtain the month-end comp worksheet and perform the following steps:
H-10e
Verify computation of total comps, tax adjustments, and net comps for
the month.
Trace total to the comp clearing general ledger account.
Trace tax adjustments to related tax accounts.
7. Determine how comp charges are handled for computing room tax and
document procedures in the workpapers:
NAME OF PROPERTY