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International Standards on Auditing for Sales & Receivable
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Step Reference:2400-1
Paper File? Yes
Entity Name: MV Reethi Rah Resort Private LimitedEngagement Name: MV Reethi Rah Resort Private Limited - 2009 Completed By:Rajith Nuwanpriya/LK/ABAS/PwC 01/28/2010
Period End: 12/31/2009 Reviewed By: Jatindra Bhattray/LK/ABAS/PwC 02/13/2010
Status: ReviewedTitle: (ISA 315, 330, 500) Understand and evaluate control activities: Revenues and Receivables Process
Details
Tailored Procedures
Results:
Understanding and evaluation of control activities
1.Room revenue
One&Only Reethi Rah is home to 130 private villas discreetly placed along the shore – with 98 Beach Villas secluded by lush tropical greenery,and 32 Water Villas set above the clear, protected waters of the lagoon. Among the largest resort villas in the world, each is detached, expansiveand equally luxurious. Room charges range from US $ 800 to US $ 6,500, which will vary between the seasons. 65% of the revenue to the totalrevenue is contributed by accommodation income. "OPERA" on-line reservation system is used by the Company for accommodation income.
2. Outlet revenue (Dining)
One&Only Reethi Rah mainly has four outlets to provide dinning services to the guests, which are Reethi Restaurant, Tapasake, Fanditha and Rah bar.Villa dinning service is also available to provide villa dinning services to the guest. "MICROS" software is used in all the outlets to record outlet revenue.Further, "MICROS" has interface with "OPERA" system. Outlet revenue contributes 20% to the total revenue of the resort.
3. Other revenue
Boutique, SPA, transport, sports & recreation and other income contribute 3%, 4%, 5%, 2% and 1% of the total revenue respectively .Reethi Rah Boutique outlet mainly sells Maldivian souvenirs and valuable gift items. SPA provides beauty studio, fitness centre, Yoga and
wellness journeys. The resort transfers the guest from Male' airport to resorts via sea and air. For which, guests are charged US $ 260 + 10% fuel chargefor adults and US $ 130 + 10% fuel charge for children per trip. Sports & recreation income is generated by land sports, water sports, excursions and tennis.Other revenues mainly include staff shop and staff bar. Except SPA, "MICROS" system is used to record the revenue at each serviceoutlet. "SPA SOFT" is used in SPA to record revenue which has interface with "OPERA" on line system.
1. Rooms rates, applicable to travel agentsSales and Marketing department and sent to the reservationscredit management cycle for rates process
2. Reservations staff enters the room rates into the system
Start
1
Rooms rates are applicable totravel agents & others
customers are decided by theS&M dept and sent to the
reservations
Refer sub-processes
“Rates”
2
Reservations enters the ratesinto the system
Refer sub-processes
“Rates”
3
Reservations’ staffs enter thereservation details to the front
office system
Receive thereservations through
travel agent anddirectly
Front officesystem (“Opera”)
Room Revenue Cycle
3. Guests can make an early reservation via travel agentsCentral) Kerzner InternationalWebsite / e-mails. Once reservation is approved by Reservation ManagerConfirmation of reservation letter and request for credit card number are sent tocustomers via e-mail. Booking is guaranteed on the receipt of credit Card number andsecurity code from the customer
2
3
Reservations’ staffs enter thereservation details to the front
office system
Receive thereservations through
travel agent anddirectly
Front officesystem (“Opera”)
Guest check-In
4
Registration cards for all thecheck-ins at the time of
check-in are printed
Registration cards
Registration cards
Mark the check-in time in theregistration card & signed bythe guest & the front officemanager and enters thedetails in the front office
system.
5
Front officesystem (“Opera”)
Front officesystem (“Opera”)
Night audit process takesplace & recognize the roomrevenue for the respective
date.
6
Guest ledger
the guests, check-in and checksystem.The Company enters into contract with tour operatorsthe Director of Sales and Marketingroom is confirmed before signing of the contractOnce the reservations are confirmedto the front office system ‘OPERA’(block) the rooms and prepare check
4. When the guests walk- into the front officesystem and print the Registration card forms
5. Registration card is signed by the guest and handed over to the Front officeRegistration card is signed by Front Office Manager or assigned official and guestprofile is updated by front office staff after acknowledgement of Front Office Manageror assigned official. If the guests come via travel agenttravel agent for the room charge on the same day of arrival of the guest
6. Night Audit Process takes place every day and once the process is runoccupied room folios is charged and the revenue is recognized in thefollowsRoom folio number Dr
Room revenue Cr
Front officesystem (“Opera”)
Night audit process takesplace & recognize the roomrevenue for the respective
date.
6
Guest ledger
At the time of Guestcheck-out
Front officesystem (“Opera”)
Guest directed by atravel agent
NoPrint a folio information bill for
both room charges & otherservices consumed & obtain
guest acknowledgement
8
Folio information bill forboth room charges &
other services (1)
Print a folio information bill forroom charges & otherservices consumed
separately
7
Yes
Front officesystem (“Opera”)
Folio information billfor room charges (2)
Folio information billother servicesconsumed (3)
Folio information bill forboth room charges &
other services (1)
Folio information bill
Any disputesin billing
Reconfirm with therelevant restaurant
bills, bar bills etc andconfirm/correct the
charges accordingly
If the dispute cannot beresolved, reverse the revenuefrom system with the approval
of proper official
Yes OR
In "ACCPAC"Guest ledger Control A/C - Dr
Room revenue A/C - CrDuring night audit process, night auditor checks the following transactions in the frontoffice system ("OPERA"),
Reservation correspondence of guests with the amount charged in the system
Daily check-in and check-
Bed tax calculation
7 & 8. At the time of Check-outfolio information bills for (a)generated and only (b) is forwarded for guest acknowledgement because the roomcharges are borne by the travel agentIf the guest is not directed by a travel agentroom charges and other services rendered are printed and forwarded for guest’sacknowledgement.If the guest agrees with the particulars of the bill hecard, etc as the acknowledgementDouble entry in "OPERA and ACCPAC
services consumedseparately
7
system (“Opera”)Folio information bill
other servicesconsumed (3)
Folio information bill forboth room charges &
other services (1)
Folio information billother servicesconsumed (3)
Any disputesin billing
Reconfirm with therelevant restaurant
bills, bar bills etc andconfirm/correct the
charges accordingly
If the dispute cannot beresolved, reverse the revenuefrom system with the approval
of proper official
9
Yes OR
Front officesystem (“Opera”)
Credit approvedguest
No
Raise the invoice in 2copies on receipt of thepayment & handoverone copy to the guest
11
Guest ledgerinvoiceNO
Billing voucher (ifguest \is directedby a travel agent)
Authorized letter,if the guest is acooperate guest
Yes
Citi ledger
Guestledger
Front office cashierselects the payment
mode as citi
10
Citi ledger
Citi ledger
Citi ledgerinvoice
Finance dept openreceivable accounts forcredit guests and printthe citi ledger invoice.
12
10
Refertreasury
processes
City Ledger A/C - DrRoom folio/Guest ledger - Cr
If the settlement is done by guestCash A/C - DrRoom folio/Guest ledger - Cr
9, 10 & 11.If there is any dispute of the bill the front office Cashier reconfirms withrelevant restaurant & bars and solve it immediatelyrebate the revenue from the system with approval of Front office manager or assignedofficial. The guests are charged only for agreed amount and the billing process takesplace the normal way.
Upon receiving the acknowledgement from the guest the Cashier check whetherhe/she is a credit approved guest or not and if the guest is entitled for credit heshould have the travel Agents voucher or email correspondence as to confirm that andafter checking the said documents the Cashier selects the settlement mode as Citi andprint a folio invoice.If the guest doesn’t have credit approval the Cashier generates the folio invoice in twocopies and hand over one to the guest
12. Once the folio invoices are sent to the accounts department every day
Citi ledger
Citi ledger
Citi ledgerinvoice
Finance dept openreceivable accounts forcredit guests and printthe citi ledger invoice.
12
Send the citi ledgerinvoices to the
customer
Swift copy forpayment
AR raises thereceipt through the
system
13
Receipt for thepayment
Receipt for thepayment
AR credits the guest’sindividual receivable
amount with the receiptamount
14
Citi ledger
End
Accounts Department opens individual receivable accounts for each travel and systemautomatically passes the credit room folio and debits the account citi ledger and raisesCiti Ledger Invoices.Credit Manager or AR Assistant tallies the manual invoice with Citi Ledger Invoicethere is any discrepancy such as excess or deficitManager.
13. Upon receiving the payment by bank transfer advice the Cashier raises a Receiptthrough system.Bank A/C - Dr
Travel agent or Citi ledger A
14. When cashiers raises the receipt though system
End
Business Process:
Ref.No.
Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancialStatementassertions
C, A, CO, EO,RO, VA, CL
Frequencyof the
control
PorD
A or M
3 Booking The confirmation registration forms are signed by the guest as confirmed,confirmed by the Reservation manager and entered in the system.
C,O A,E,R/O D P
5,6 Night audit Revenue relevant to the rooms are recognised at the time of night auditprocess and the front office system is automatically updated .
V,C A,V,CO,C,R/O,E D P
3,8 Ledger maintenance All the room income has been credited in the system on the same day , in thesame order. Accounts receivable also get update. Guest ledger for a room hasto be closed in OPERA to open a another “Guest Ledger” for that room
C C,A,V D P
8,9 Ledger maintenance At the end of the day, all ledgers are updated in the OPERA . V,A,C A,C,V D P
Ledger maintenance All the transactions are uploaded by the income Auditor in accounting system(ACCPAC) on a daily basis. Assistant Director of Finance reviews, approvesand authorizes the report. Daily MIS report (Flash report) is generated from"opera" for management purpose. A R Excutive prepares monthlyreconcilation between ACCPAC and OPERA for Citi ledger.
C, A C ,A ,CO D,M P
Start
Guest walk-into the outlet
Take the orderfrom guest as
per Menu
1
Kitchen OrderTicket
Pick up menuprices from the
“MICROS” system
“MICROS”system
Open a “check” in the“MICROS” system,enter the order and
save.
2 1
The KitchenOrder Ticket isprinted at the
kitchen
3 1
Restaurant Revenue Process
1. Guest makes the order selected from the menu
2. The orders made by the guests are entered by the outlet waiter in to the system byopening a ‘check” in the MICRO System and savethe system itself.
3. Once a check is saved in the system, a Kitchen Order Ticket is printed at the kitchenautomatically. The number of checks opened in the system indicates the number of
Kitchen OrderTicket
Pick up menu
prices from the“MICROS” system
“MICROS”system
enter the order andsave.
2 1
The KitchenOrder Ticket isprinted at the
kitchen
3 1
“MICROS”system
Serve the orderand print the bill
4
Outlet bill
Obtainacknowledgement
from the guest
5 1
Acknowledgedoutlet bill
Acknowledgedoutlet bill
Select the room folionumber and select thesettlement mode as citi
in the system.
6
“MICROS”system
“OPERA” systemGuest ledger
Through the systeminterface the particular
Guest ledger in OPERA
Acknowledgedoutlet bill
Acknowledged billshanded over to finance
department for nightaudit process
tables opened during the day.
4. The order is served to the guest and raise a bill by the outlet waiterRates applicable for each Mini bar item have been decided by the Fare entered in to the MICRO System by the IT Manageris selected for billing, the system automatically picks the unit price
5. The outlet waiter obtains the guest's acknowledgementthe guest) in the bill. A copy of bill is handed over to the guest
6 & 7. The outlet Cashier enters the room number and select the settlement mode as Citiand the room folio is debited and the relevant outlet revenue account is creditedautomatically in both system ("MICROS'' andinterface with "OPERA".
Acknowledgedoutlet bill
Select the room folionumber and select thesettlement mode as citi
in the system.
6
“MICROS”system
“OPERA” systemGuest ledger
Through the systeminterface the particular
Guest ledger in OPERAis updated.
7
Acknowledgedoutlet bill
Acknowledged billshanded over to finance
department for nightaudit process
8 1
Night auditor checksthe MICROS sales &
OPERA sales andrecognize revenue and
close the day
9 1
Collection from the guestfor all the consumption aredone at once at the time of
check out and the stepsare described in the room
revenue function
Refer “RoomRevenueProcess”
End
Refertreasury
processes
8. At the end of the closure, the signed bills are handed over to the night auditor alongwith the MICRO’s day financial reports to verify the signature and posting of theincome.
9. Night auditor checks the MICRO's sales with OPERA sales for the particular outletsIf there is any discrepancy noted, night auditor marks in the check list which is resolvedby the income auditor in the following day. if notclose the day in the "MICRO".Double entry in "OPERA and ACCPAC"Roomfoilo/Guest ledger A/C - DrFood/Beverage/Wine income A/C - Cr
Collection from the guest for all the consumption are done at once at the time of checkout and the steps are described in the room revenue functionprocess
Business Process:
Ref.No.
Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancial Statement
assertionsC, A, CO, EO, RO,
VA, CL
Frequencyof the
control
PorD
AorM
2 Ordering A check is opened in the MICRO system for every order received. A,C A,C,R/O,E M P A
3 Ordering Kitchen Order Ticket is automatically printed at the kitchen, A V D P A
5,6 Billing Outlet bills are acknowledged by the guest as confirmed. C,A E,R/O,V D P MGT
8 Night audit process Night auditor checks the MICRO's sales with OPERA sales for theparticular outlets and discounts given by the outlets with properapproval. If there is any decrepancy noted, night auditor marks in thecheck list which is resolved by the income auditor in the followingday. if not, recognize the revenue for the day and close the day in the"MICRO".
C,A A,V D P MGT
1. Guest buys goods in Boutique outlets
Start
Guest buys goods inBoutique outlet
1
Enter Room No of theguest & the items
details into “MICRO”and print the detail bills
2
Detail bill
Detail billBill is acknowledged byboth guest and officer of
“MICROS”
Acknowledge bills isforwarded to Finance
Boutique Revenue Cycle
Credit cardpayment
Collect paymentthrough credit card
machine
4
Yes
No
Credit card receipt
2. Outlet official enters room number of the guestprints the detail bills. Prices of the items have already been added into the system andwhen the Outlet official enters the items' details into the systemautomatically. Hence the "MICRO" has interface withfolio and outlet revenue get updated in "OPERA
3 & 4. If the guest wishes to pay by credit cardmachine. "MICRO" and "OPERA" record the collection thorough credit card and updates
Detail billBill is acknowledged byboth guest and officer of
boutique.
3
Acknowledge bills isforwarded to Finance
dept
6
Front Office“OPERA”
Through the systeminterface the particular
Guest ledger in OPERAis updated includingcredit card payment
5
7
Detail bill
Discrepanciesidentified
Close the daytransactions and
recognize the revenue
8
Night audit checks theMICRO’s bill with
OPERA
2
EndNo
Give the notification toincome auditor & Credit
Rectify thediscrepancies nextworking day and
End
Yes
Credit cardpayment through credit card
machine
4
Yes
No
Credit card receipt
the room folio. Detail bill and credit card payment slipguest. Copy of both bill and card payment slip are given to guest
5 & 6. Copy of acknowledged bill, credit card receipt and details transaction details areforwarded to Finance department for night audit process
7, 8, 9 & 10. Night auditor checks the MICROOPERA for the particular outlets. If there is any discrepancy notedthe check list which is resolved by the income auditor in the following dayrecognize the revenue for the day and close the day in theDouble entry,
Discrepanciesidentified
Close the daytransactions and
recognize the revenue
8
EndNo
Give the notification toincome auditor & Credit
manager
9
Rectify thediscrepancies nextworking day and
recognize the revenue
10
End
2
Yes
Close the daytransactions
11
End
`
Refertreasury
processes
Room folio A/C - DrBoutique revenue A/C - Cr
If it is consignment sales, depend on the contractACCPACBoutique revenue A/C - DrParticular consignment payment A/C - CrIf it is posted to room folio, collection from the guest for all the consumption are done atonce at the time of check out and the steps are described in the room revenue functionPlease refer room revenue process.
Business Process:
Ref.No.
Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancialStatementassertions
C, A, CO, EO,RO, VA, CL
Frequency of thecontrol
PorD
AorM
7,10 Night audit process Night auditor checks the MICRO's sales and credit cardcollection with OPERA for the particular outlets. If there is any
C,A A,V D P MGT
discrepancy noted, night auditor marks in the check list which isresolved by the income auditor in the following day. if not,recognize the revenue for the day and close the day in the"MICRO".
1. SPA treatments rates are decided by Manager of SPA and entered into the systemPlease refer rate process.
Start
Guest reserve theservice over thephone or through
Allot the time inthe system
based on guestrequest
2
SPA Revenue Process
Request from theguest “SPA SOFT”
system
Consultationform
Consultationform is filled andacknowledged
Acknowledgedconsultation
form
SPA treatments rates aredecided by Manager of
SPA and entered into thesystem
1
Refer sub-processes
“Rates”
2. Guest reserve the service via phone and mailthe treatment and time, block the time to particular therapist in the system
the systembased on guest
request
2
“OPERA” systemGuest ledger
Through the systeminterface the particular
Guest ledger in OPERAis updated.
7
Request from theguest “SPA SOFT”
system
Consultationform
Consultationform is filled andacknowledgedby the guest.
3
Acknowledgedconsultation
form
Acknowledgedconsultation
form
Serve the guest andsigned the
consultation form bytherapist
4
Service completedconsultation form
Service completedconsultation form
“SPA SOFT”system
Service invoice isacknowledged by
guest
6 Acknowledged invoicehanded over to front
SPA materialsales
Therapist signs out system forcompleted service and select theroom folio number & select thesettlement mode as citi in the
system. If there is any sales of SPAmaterial, enters the material codeinto the system. Raise the invoice
5
Service invoice
Service invoice
3 & 4. Guest signs the consultation formwants. Consultation form is handed over to the therapist and which is also signed bytherapist, who does not serve any treatment without having consultation form and at theend of the service, therapist signs out in to the system as well
5, 6, 7 & 8. When therapist signs out system for completed service and selects the roomfolio number & select the settlement mode as citi in the systemSPA material, enters the material code into the systemsales in "OPERA" and "SPA soft" gets updated simultaneously through interfaceRaised invoice is acknowledged by guestsettlement at the time of check out.
“OPERA” systemGuest ledger
Through the systeminterface the particular
Guest ledger in OPERAis updated.
7
Service invoices
Printed serviceinvoices handed overto finance departmentfor night audit process
9
Night auditor checksthe SPA SOFT sales &
OPERA sales andrecognize revenue and
close the day
10
Collection from the guestfor all the consumptionsand services are done atonce at the time of check
out and the steps aredescribed in the room
revenue function
Refer “RoomRevenueProcess”
End
Service invoice isacknowledged by
guest
6 Acknowledged invoicehanded over to front
office for the settlementat the time of check-out
8
sales
5
Service invoice
Refertreasury
processes
9. Printed invoice in "SPA soft" is sent to finance department for night audit process fromSPA reception.
10. In the night audit process, Night auditor checks the SPA SOFT salesand posting to the room polio. Recognize revenue and close the dayprocess is almost nil.Double entry,Room folio A/C DrParticular Income Cr
Collection from the guestfor all the consumptionsand services are done atonce at the time of check
out and the steps aredescribed in the room
revenue function
Refer “RoomRevenueProcess”
End
Refertreasury
processes
Business Process:
Ref.No.
Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancialStatementassertions
C, A, CO, EO,RO, VA, CL
Frequencyof the
control
PorD
AorM
2,3 Reservation Treatment is only served to the guest who reserved previously.System shows the guset details and staff allocated for thattreatement once it is reserved.
A,C A,C,R/O,E Multiple P A
3 Servicing Treatment is only served the guest who has signed the consultationform.
A V D P MGT
5, 10 Night audit process Invoices are generated by the system. System generates invoice,once Therapist signs off in the system at the end of the serviceserved to guests. Night auditor checks the SPA SOFT sales &OPERA sales and complimentary services given by SPA. If there isany discrepancies note, he informs to SPA Manager, Credit Mangerand Income Auditor for following up.
C,A C,E,R/O,V D P MGT
1
Reservations’ staffs enter thereservation details includingtransfer way to the resort to
the front office system
Receive thereservations through
travel agent anddirectly
Front officesystem (“Opera”)
Guest check-In
2
Front office staff charges thetransfer income to the
concerned room no at thepoint of check in.
Front officesystem (“Opera”)
Front officesystem (“Opera”)
3
Print the daily event reportand checks whether thetransfer charges were
charged to all check in guest.
Daily event report
Start
Transport Income Cycle
1. Reservations’ staffs enter the reservation details including transfer way to the resort tothe front office system at the time of reservation. For more details of reservationrefer room revenue process number 3.
2. Front office staff charges the transfer income to the concerned room no at the point ofcheck in of the guest. Room folio and transfer income is updated in the
3. Front office staff prints the daily event report at the end of the day and checks whetherthe transfer charges were charged to all check in guests
Front officesystem (“Opera”)
3
Print the daily event reportand checks whether thetransfer charges were
charged to all check in guest.
Daily event report
Daily event report
4
Night auditor checks the no ofarrivals and transfer income
booked in the system.
5
At the end of the day night, ifany discrepancy is identified,
night auditor forwards thereport to income auditor for
corrections.
Collection from the guestfor all the consumption aredone at once at the time of
check out and the stepsare described in the room
revenue function
End
Refertreasury
processes
4. Night auditor checks the no of arrivals and transfer income booked in the system withreference to daily event report.Guest ledger A/C - DrTransfer income A/ C -Cr
5. At the end of the day night, if any discrepancy is identifiedreport to income auditor for corrections. Discrepancy is corrected in the following day bythe Income Auditor.
Collection from the guestfor all the consumption aredone at once at the time of
check out and the stepsare described in the room
revenue function
End
Refertreasury
processes
Business Process:
Ref.No.
Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancial Statement
assertionsC, A, CO, EO, RO,
VA, CL
Frequencyof the
control
PorD
AorM
4,5 Night audit process Night auditor checks the no of arrivals, departures and transfer incomebooked in the system with reference to daily event report. At the end ofthe day night, if any discrepancy is identified, night auditor forwards thereport to income auditor for corrections. Discrepancy is corrected in thefollowing day by the Income Auditor.
C,A A,V,C Daily P MGT
1. Sports and recreation manager receives guest requests for the activities over the phone
Receive the guestrequest over phone
“OPERA”system
Start
Guest request
`
Guest request
1
Sports and recreationmanager receives guestrequest for the activitiesover the phone. Prepare
guest request.
2
Arrange the requestedactivities to the guest andserve the guest according
to the request.
``
3
Sports and recreationmanager enters all the
services charges by selectingroom folio number in the
MICRO system
“MICRO”system
Sports and recreation income cycle
He/she prepares guest request for activities preferred by the guest
2. Sports and recreation manager arranges the requested activities by the guestwho are responsible for the activities, serve the guest according to the request
3. Sports and recreation manager enters all the services charges by selecting room folionumber in the MICRO system. Room folio in OPERA and revenue generated by theactivities in both system gets updated.
“OPERA”system
3
Sports and recreationmanager enters all the
services charges by selectingroom folio number in the
MICRO system
“MICRO”system
4
Print the detail bill and getthe acknowledgement
from the guest
Acknowledge bill
5
Copy of acknowledged billis sent to front office for
collection.`
`
6
Copy of acknowledged billand details of transactions
for the day are forwarded toFinance dept for night audit
process.
Acknowledge bill
Acknowledge bill
TransactionDetails for the
day``
Night auditor checks theMICROS income & OPERA
income and room folioupdation and recognize
revenue and close the day
4 & 5. Print the detail bill and get the acknowledgement from the guestacknowledged bill is sent to front office for the collection
6 & 7. Copy of acknowledged bill and details of transactions for the day are forwarded toFinance dept for night audit process. Night auditor checks the MICROS incomeincome and room folio updation and recognize revenue and close the day
6
Finance dept for night auditprocess.
TransactionDetails for the
day``
Night auditor checks theMICROS income & OPERA
income and room folioupdation and recognize
revenue and close the day
7 1
Collection from the guestfor all the consumption aredone at once at the time of
check out and the stepsare described in the room
revenue function
End
Refertreasury
processes
Business Process:
Ref. No. Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancialStatementassertions
C, A, CO, EO, RO,VA, CL
Frequencyof the
control
PorD
6,7 Night audit Copy of acknowledged bill and details of transactions for the day areforwarded to Finance dept for night audit process. Night auditor checks the
C,A C,A Daily P
MICROS income & OPERA income and room folio updation and recognizerevenue and close the day . Further, he checks the discounts andcomplimentary services given by them.
Introduction
Staff shop and bar income
Room rates
1. Sales and marketing department gathered necessary information such as past room ratesrate, market demand and future guest arrivals etc.. from internal and outsides sources
2. Consider seasonal demands and decide the room rates based on information gathered
Start
Necessary informationare gathered from
internal and outsidessources.
1
Consider the demandperiodically and decidethe rates by DoS&M,
DoF & GM.
2
Rates decided aredocumented and signedby the GM, Dos & DoF.
3
Decided rates list
Decided rates list
Decided rates list issent to cooperate officeUS. It is approved by
Approved rates list
Room rates process
3. Decided rates are documented and signed by the General ManagerFinance of the resort.
Rates decided aredocumented and signedby the GM, Dos & DoF.
3
Decided rates list
Decided rates list
Decided rates list issent to cooperate officeUS. It is approved by
Cooperate office
4
Approved rates list
Rates applicable totravel agents are sent to
travel agent for theirconfirmation
5
Rate confirmation
Create necessary ratecodes in the system
6
Front officesystem (“Opera”)
Rates slabs are enteredinto the system under
the rates codes created.
7
Approved rates list
4. Decided rates list is sent to cooperate office. Rates are approved by cooperate officeapproved with the Budget by board of Directors.
5. Rates applicable to travel agents are sent to travel agent for their confirmation
6. Once they confirm the rates codes are created in the system.
7. Rates applicable for particular codes are entered into the system
6
Rates slabs are enteredinto the system under
the rates codes created.
7
Rates entered ischecked by the nextreservation official.
8
Night auditor checks thesystem arrival list withthe correspondence
every day and confirmthe correctness.
9
Roomrevenue
activity no 3
Roomrevenue
activity no 6
8. Next reservation official (other than , who enters the rates) checks the accuracy of the rates entered in the system
9. At the end of the day, night auditor checks the arrival list and rates with the correspondencenight auditor marks in the check list which is forwarded to credit manager and income audit for following up
Night auditor checks thesystem arrival list withthe correspondence
every day and confirmthe correctness.
9
Front officesystem (“Opera”)
Daily event reports includingguest arrival details & rates
prepared by relevant dept and itis reviewed & discussed by GM,
DoF & DoS by following day.
10
activity no 6
End
10. Daily flash report including arrival details and rates are reviewed and discussed by General ManagerFinance and Director of Sales and Marketing by the following day
Business Process:
Ref.No.
Sub-process/Transac-
tion
Description of control activity, including its objective Informationprocessingobjective
C, A, V, R
Contribution toFinancialStatementassertions
C, A, CO, EO, RO,VA, CL
Frequencyof the
control
PorD
AorM
3 & 4 Room rates Decided rates are documented and signed by the General Manager, A,V A,O Annually P M
Director of Sales and Marketing and Director of Finance of theresort. Decided rates list is sent to cooperate office. Rates areapproved by cooperate office (Kerzner in US). Decided rates areapproved with the Budget by board of Directors.
9 Room rates At the end of the day, night auditor checks the arrival list and rateswith the correspondence. If there is any discrepancy, night auditormarks in the check list which is forwarded to credit manager andincome audit for following up.
C,A,V C,A,EO Daily P M
N/A System control Reservation staffs only have access to rates changes. R A,O N/A P A
Outlet menu prices
Boutique items prices
SPA treatement charges
Transport charges
Sports and recreation charges
Staff shop and bar
Credit management
Validation of control activities
Business Process:
Ref.No.
Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report to Client(Yes/No)
3 The confirmation registration forms are signed by
the guest as confirmed by the Reservation manager
and entered in the system.
We examined the guest registration forms to ensure
the occurrence of the transaction.
We selected 60 guests arrived during August ,
September and November 2009 and examined the
guest registration forms.
No exception noted
No No
5,6 Revenue relevant to the rooms are recognised at the
time of night audit process and the front office
system is automatically updated . During night audit
process, night auditor checks the following
transactions in the front office system ("OPERA"),
Reservation correspondence of guests with the
amount charged in the system.
Daily check-in and check-out
Bed tax calculation
W reperformed the night auditor works and decided
to observe the night audit auditor work.
We repeformed the night auditor work for 50 guest.
We examined the rates with correspondence and
raised to OPERA. We observed the night audit work
on 10 January 2010.
ss
No exception noted
No No
3,8 All the room income has been credited in the system
on the same day , in the same order. Accounts
receivable also get update. Guest ledger for a room
has to be closed in OPERA to open a another “Guest
Ledger” for that room.
We checked the revenue recognition from OPERA to
We checked the 60 days revenue recognition with
OPERA.
No exception noted.
No No
ACCPAC.
All the transactions are uploaded by the income
Auditor in accounting system (ACCPAC) on a daily
basis. Assistant Director of Finance reviews,
approves and authorizes the report. Daily MIS
report (Flash report) is generated from "opera" for
management purpose. A R Executive prepares
monthly reconciliation between ACCPAC and OPERA
for Citi ledger and it reviewed by Assistant Director
of Finance and approved by Director of Finance.
We examined the citi ledger reconciliation between
ACCPAC and OPERA.
We examined the following months citi ledger
reconciliation between ACCPAC and OPERA during the
year 2009.
Reviewed Approved
by Ass.DoF by DoF
March v v
July v v
August v v
October v v
November v v
December v v
Month
No exception noted.
No No
Business Process:
Ref.No.
Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report to Client(Yes/No)
8 Night auditor checks the MICRO's sales with OPERA sales for
the particular outlets and discounts given by the outlets with
proper approval. If there is any decrepancy noted, night auditor
marks in the check list which is resolved by the income auditor in
the following day. if not, recognize the revenue for the day and
close the day in the "MICRO".
We checked the revenue recognition from MICROS to OPERA
and to ACCPAC.
We reperformed the night auditor works and checked the
revenue recognition from MICROS to OPERA and to ACCPAC
for 60 days.
No exception noted.
No No
Business Process:
Ref.No.
Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report to Client(Yes/No)
7,10 Night auditor checks the MICRO's sales and credit card
collection with OPERA for the particular outlets. If there is
any discrepancy noted, night auditor marks in the check list
which is resolved by the income auditor in the following day.
if not, recognize the revenue for the day and close the day
in the "MICRO".
We checked the revenue recognition from MICROS to
OPERA and to ACCPAC.
We reperformed the night auditor works and checked the
revenue recognition from MICROS to OPERA and to ACCPAC
for 60 days.
No exception noted.
No No
Business Process:
Ref.No.
Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report to Client(Yes/No)
5,10 Invoices are generated by the system. System generates
invoice, once Therapist signs off in the system at the end
of the service served to guests. Night auditor checks the
SPA SOFT sales & OPERA sales and complimentary services
given by SPA. If there is any discrepancies note, he informs
to SPA Manager, Credit Manger and Income Auditor for
following up.
We checked the revenue recognition from SPA Soft to
OPERA and to ACCPAC.
We reperformed the night auditor works and checked
the revenue recognition from SPA Soft to OPERA and to
ACCPAC for 60 days.
No exception noted.
No No
Business Process:
Ref.No.
Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report to Client(Yes/No)
4,5 Night auditor checks the no of arrivals, departures and transfer
income booked in the system with reference to daily event report.
At the end of the day night, if any discrepancy is identified, night
auditor forwards the report to income auditor for corrections.
Discrepancy is corrected in the following day by the Income
Auditor.
We checked the revenue recognition from OPERA to ACCPAC.
We reperformed the night auditor works and checked the
revenue recognition from OPERA to ACCPAC for 60 days.
No exception noted.
No No
Business Process:
Ref. No. Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report toClient
(Yes
6,7 Copy of acknowledged bill and details of transactions for the day are
forwarded to Finance dept for night audit process. Night auditor
checks the MICROS income & OPERA income and room folio updation
and recognize revenue and close the day . Further, he checks the
discounts and complimentary services given by them.
We checked the revenue recognition from MICROS to OPERA and to
ACCPAC.
We reperformed the night auditor works and checked the
revenue recognition from MICROS to OPERA and to ACCPAC
for 60 days.
No exception noted.
No No
Staff shop and Bar
Business Process:
Ref.No.
Validation Procedures Results WeaknessIdentified?(Yes/No)
[Link]
Report to Client(Yes/
8,9,10 Night auditor checks the MICRO's cash and credit sales with OPERA
and check the staff account updation in OPERA. If there is any
discrepancy noted, night auditor marks in the check list which is
resolved by the income auditor in the following day. if not, recognize
the revenue for the day and close the day in the "MICRO".
We checked the revenue recognition from MICROS to OPERA and to
ACCPAC.
We reperformed the night auditor works and checked the
revenue recognition from MICROS to OPERA and to ACCPAC
for 60 days.
No exception noted.
No No
Room rates
Outlet menu prices
Boutique items prices
SPA treatement charges
Transport charges
Sports and recreation charges
Staff shop and bar
Credit management
Attachments:
Price Changes
Top 10 Tour Operators rate validation
Categorisation
Area 2400 - Revenue and receivables process
Status & Maintenance
Status: ReviewedMaintenance
Recommended