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

sg
Audit Program: Food & Beverage Revenue Cycle

Objective: To ensure revenue from sale of food and beverage is correctly and completely
accounted for.

Prepared By : _______________________ Reviewed By : ________________

Date : _______________________ Date : ________________

Audit Steps WP Ref.

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.

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Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg
Audit Program: Food & Beverage Revenue Cycle

Audit Steps WP Ref.

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.

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

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Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg
Audit Program: Food & Beverage Revenue Cycle

Audit Steps WP Ref.

recorded in the register and prior to payment.

- Room key or credit card is obtained from guests running a tab

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
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Contributed January 30, 2002 by Sivanesan Sivakaruniam siva@kepland.com.sg
Audit Program: Food & Beverage Revenue Cycle

Audit Steps WP Ref.

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.

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.