Saturday, 1 October 2011

Discuss those points which should be considered by the auditor while auditing the accounts of a hotel

Following points must be considered by the auditor in the case of hotel audit :

1. Internal Check :-
Auditor should examine that internal check system is effective to not? He should pay special attention to ordering receipts and payments etc.

2. Checking Of Receipts :-
Auditor should check the receipts from the visitors and compare them with the cash book. He should also check the cash receipts and the accounting of cashier and waiters.

3. Verify Purchase :-
Auditor should verify the purchase of capital items, food stuff and consumable items.

4. Checking Of Valuation Method :-
Auditor should examine the accuracy of the method of stock valuation.

5. Verifying The Issuing System :-
Various items like eggs, tea, meat, fish, soap, bed sheets, and tooth picks are issued to the different employees. Auditor should check the system of issuing such items.

6. Verify Depreciation :-
Auditor should verify that adequate depreciation have been provided for the furniture, plant and crockery.

7. Payment To Employees :-
He should examine that salaries and wages are paid according the wage sheet and salary book.

8. Verify Invoices :-
Auditor should verify the purchase invoices and see that pro[per allocation has been made between capital and revenue expenditure.

9. Cash And Bank Balance :-
Auditor should count the cash in hand physically and verify the bank balance with the bank statement.

10. Outstanding Balances :-
Auditor should check the outstanding balances of the hotel.

11. Financial Control :-
Auditor should also check that over the stocks and stores effective financial control system is applied or not?

12. Visitor's Ledger :-
He should examine the visitor's ledgers book and total schedule balances should be compared with the total visitors accounts.


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