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The auditing for hotels differs from the type, size of the hotel. The degree of mechanization had a great impact on the auditing of a hotel. The auditor must examine the system or internal check-in vogue with regard to the ordering, purchasing, receiving, storing, issuing etc. He is also expected to check the system of book and record keeping in vogue in the hotel. The cash books receipt and payment side must be checked and tallied with chequebooks. All cutting, overwriting, discounts, allowances, missing checks, etc. must be examined. The receipt must be made against the proper printed and signed receipts and should be entered either in the sales summary sheets or cash book. As far as possible no cash payments should be made expect payments made by the petty cashier. Salaries and wages must be paid by cheques after receiving the bills from personnel department and attendance from Time Office and the concerned departments. Cheques should be issued to suppliers against their bills along with the supply order, invoice, store, keeper’s receipt, etc.
Night Auditing in Hotels
Each hotel appoints a night auditor who works independently and reports to either Chief Accounting or to General Manager. His duty starts after 9 p.m. and works until next day morning. Due to his night working hours, he is termed as Night Auditor. He audits the accounts of Front Office Cashiers.
Duties of Night Auditor in Hotel:
1. Reconcile all sales statements submitted by the various departments’ cashiers to front office cashiers throughout the day.
2. He verifies all the debit and credit vouchers at Front Office Cash.
3. Checks guest folios.
4. Verifies Front Office Cashier Report.
5. In some hotels, he is also required to post the UN posted vouchers at Front Desk and also debit all rooms with the day’s room tariff.
6. In case of Cash Register Machine (like N.C.R., Cash Registers, etc.) He clears the machine.
7. Prepares a statement of bills for those rooms whose bill crosses a specified amount. 8. He audits night receptionist’s room report.
9. He checks the accuracy of accounts like overcharging, undercharging, cutting, discounts, allowances, etc. extended to the guest.
10. He checks the City Ledger Account before transferring to Account Department for the collection of bills.
The motive of night auditors is to rectify the error before the guest checks out so that neither he is overcharged nor undercharged. This helps hotel in improving its revenue and the image.
Review
Internal auditing is a part of the internal control system. It is a perpetual verification of accounting books, bills, vouchers, cash receipt, payments, bank reconciliation, utmost utilization of assets, safety and control assets, control of bad debts, etc. They are responsible for accounting procedure, finding budget variances, ensuring organization principles, policies, etc. It possible either its organization can have its own employees or appoint an outside agency to perform the duties of internal auditing. Small organizations generally do not have separate audit department not arrange any outside agency. Internal auditor will head the department and report to General Manager / Chief Accountant / Director.