OVERVIEW

Revenue is a one of the important thing in the business sectors, included the
service business, especially in hotel industry. This is because most of the activity that
runs in the hotel is related with revenue, such as receiving money from the hotel guest,
laundry service and food and beverages service. So, we decide to conduct an audit
program of revenue cycle in the hotel services, especially at Hotel 999.
Hotel 999 is a lodging service for the public. Beside that, this hotel is also provide
with laundry service and food and beverages. Hotel 999 is located at Jl. Sayangan No.769
Palembang and was established since 1995 by Mrs. Lince. This hotel is a private
ownership business and open daily for 24 hours service.
From the explanation above, we are interested in auditing the internal control
for the revenue cycle at Hotel 999 Palembang.

AUDIT OBJECTIVES OF REVENUE CYCLE

The Audit Objectives for the revenue cycle are:
1. To ascertain that all billable services are properly reported and accurately reflected in
the financial statements.
2. To determine that adjustments to revenue are appropriate and approved.
3. To determine that Company procedures and policies regarding revenue recording and
reporting are carried out in accordance with current requirements.
4. To ensure that controls and procedures in use are efficient, effective and economical.

AUDIT PROCEDURES
1. Perform a thorough review of original source documents including:
- laundry invoices (laundry bill), food&drink invoices (bill order), and registration bill
2. Perform and review the internal control of the transaction recording
3. Give questionaire to each parties that responsible for each transaction
4. Analyze the questionaire that given to each parties

AUDIT PROGRAM
1. Evaluate the Internal Control Questionnaire for weaknesses. If risk is high, consult
with In-Charge or prepare SAFs.
2. Based on the P&L review, determine if Guaranteed No-shows were consistently billed.
Perform testing as deemed necessary, i.e., Variances to budget and history are
unfavorable, and there is no current month activity.
. Perform testing of other miscellaneous revenue sources applicable to the hotel such as
toiletries. Include the supporting documents.
4. Review significant observations with the owner of the hotel.

QUESTIONAIRE
Part I
For Owner
1. What kind of procedure (manual/computerized) that used to record any transaction at
the hotel?
2. How many workers do you have?
3. Does any worker have double duty?
4. When did you check the data of the revenue transaction?
5. When did you collect the money from the transaction?
6. Could you take the money from cashier before the date of revenue collection?

PART II
For Receptionist
1. What kind of procedure (manual/computerized) that used to record any transaction at
the hotel?
2. If manual, what kind of media that you used to record the transaction?
3. What is your duty?
4. Do you request the deposit?
5. Who receipt the deposit money?
6. What is the procedure of guest registration?
7. How many copies of billing statement did you prepare for recording the transaction?
8. Do you also record the transaction into the ledger?
9. How many people in charge as the receptionist?
10. Who is in charge of reporting the revenue report?
11. What is the procedure of revenue report?

Part II
For Cashier
1. How many copies of billing statement did you prepare for recording the transaction?
2. Do you also record the transaction into the ledger?
3. How many people in charge as the cashier?
4. Did the owner ever ask for the money before the usual date of revenue collecting?
5. What kind of procedure (manual/computerized) that used to record any transaction at
the hotel?
6. If manual, what kind of media that you used to record the transaction?
7. What is your duty?
8. Who receipt the deposit money?
9. What is the procedure of cash receipt?
10. Who is in charge of reporting the revenue report?
11. What is the procedure of revenue report?

Part III
For Room Service
1. How many people in charge as the room service?
2. What is your duty?
3. Do you receive the money?
4. For whom did the invoice reported to after the order received?
5. What kind of procedure (manual/computerized) that used to record any transaction at
the hotel?
6. If manual, what kind of media that you used to record the transaction?

Part IV
For Food & Beverage Service
1. How many people in charge for the food & beverage?
2. What is your duty?
3. What kind of procedure (manual/computerized) that used to record any transaction at
the hotel?
4. If manual, what kind of media that you used to record the transaction?
5. Do you receive the money?
6. Who is responsible for the billing?
8. What is the procedure of ordering food?
8. How many invoices prepared to record transaction of food and beverages that ordered
by the customers?
9. To who did the invoice reported to after the order received?

Part V
Laundry Service
1. How many people in charge for laundry service?
2. What is your duty?
3. What kind of procedure (manual/computerized) that used to record any transaction at
the hotel?
4. If manual, what kind of media that you used to record the transaction?
5. Do you receive the money?
6. How many invoices prepared to record transaction of laundry service that ordered by
the customers?
7. To who did the invoice reported to after the order received?
8. Who is responsible for the billing?
9. What is the procedure for laundry service?
 ORGANISATIONS STRUCTURE

HOTEL 999

Owner

Receptionist

Food and Laundry

Cashier Room Boy Beverage Service

Owner

Owner of the company is someone who founded the business by provides private

funding to accommodate the hotel facilities and hotel infrastructure. The method of

recording the transaction is still manual. This hotel employs 15 employees and some of

the employee has double duties. Every day at night the owner will check and collect the

revenue, but the owner never checks the revenue monthly or annually to count the total

profit over the period. The owner were allowed to take the money (privet) outside the

revenue collection time (in the morning, etc)

Receptionist

Receptionist is a person who responsible to welcome and record the guest that

will be stayed. Besides, she also responsible for give information about the hotel. At
Hotel 999 there are two receptionist and they also have duty to record the transaction or

hotel revenue.

Cashier

There are two cashiers at Hotel 999. Cahier is a person who receives the money

from the customer (hotel guest). In the practice, the cashier only receives the payment in

the form of cash.

Room Boy

Room boy is a person that has duty to clean up all the room at the hotel and they

have to check the vacant room and report it to the receptionist. Besides, room boy also act

as the intermediary to service the hotel guest, such as receiving laundry order and also

food & drink order. There are 8 room boys in this hotel.

Laundry Worker

Employees at the laundry section are 2 people, that responsible for

accommodating the laundry service for the hotel guest. The input that used in the

procedure of receiving the laundry service is bill laundry that prepared to record the

laundry service order that prepared by the hotel parties for their customer who want to

use the laundry service.

Kithen (Food & Beverage)

There is only one person who responsible for the work in the kitchen and has duty

to prepare the food or drinks whenever there are order from the customer. Input that used

in this procedure called bill of order that prepared only to record the food and drink

ordered by the hotel guest.

GUEST REGISTRATION PROCEDURE

In the procedure of guest registration, the guest must approach the receptionist to

process the registration. Here, receptionist will record the guess identity in the

registration billing (2 copies). Beside that the receptionist will also record the

check in time, number of people stayed, room type, room number, room price,

phone number and the name of the person. The registration bill consist of 2 copy,

the first copy is white, that will be given to the hotel guest as the proof of payment

later on, and the second copy that will be kept as achieve. After finished will the

recording the necessary information, the guest shod pay the deposit payment first.

The down payment is paid through the cashier. The media used in the manual

procedure of received hotel guest are stationary and guest book.

Control that runs in the procedure of guest receive are by record the

guest identity ad also the date of check in and check out in guest book that

prepared especially to record this transaction.

FOOD AND BEVERAGE PROCEDURE

Bill order only have one copy that used together by the kitchen staff,

receptionist, and room boy. The information obtain from the bill order are the date

of order, room number, room boy name, amount of portion ordered, price, and the

total price. This bill order made as proof of transaction that there is an order of

food and drink.

In the process of ordering food and drink, the customer could order it

through the room boy that will record the order by the hotel guest. After it been
 recorded, the notes will be given to the kitchen staff to prepare the order. The

kitchen staff will record the order in the book that prepared in the kitchen. After

the recording, the notes will be given to the receptionist that will turn it into bill

order that will be given to the hotel guest at the check out time or when the

customer paid the food and drink order. The food and drink that already done will

be delivered by the room boy to the room that orders it. The media used in the

procedure of ordering food and drink are stationary and book.

Control that done in the procedure of food and drink order is to

record the order again in the book of food and the drink order, that will be

used as the archive.

CASH RECEIPT PROCEDURE

Input that used is the procedure of cash receive is the registration note that

has white color, white color bill order, and white color bill laundry. The input

users in this procedure are cashier, receptionist, owner/director, and customer.

In the procedure of cash receive, the receptionist will count how long the

customer stayed and how much they should pay. Besides, she will also count the

additional transaction from the food and drink order, and also the laundry service.

After that the receptionist will give the white notes and bill to the customer and

paid to the cashier. Whereas, the yellow note will be keep by the receptionist as

the achieve. To avoid the lost of notes archive, the receptionist usually record the

transaction in the guest book. Then, the cashier will receive some amount of

money from the customer that will deliver to the director. The media used in the
 cash receive procedure are stationary, calculator, and guest book. The amount of

money receive from the customer will be record in the guest book along with the

guest identity that recorded at the check in time.

LAUNDRY PROCEDURE

Laundry bill were made as transaction proof of laundry service. The laundry bill

consists of 2 copies, first copy is the white one and the second copy is the yellow one.

This bill used by the receptionist, the laundry staff, cashier, and the room boy. Laundry

bill were made in the form of notes and produce information such as guest name, room

number, date, room boy name, amount of clothes, total price, and signature of the laundry

service order.

In the procedure of receiving the laundry order, the hotel guest could asked the

room boy that will record how many clothes and kind of clothes that will be washed, then

report it to the receptionist. The receptionist will record it in the book especially for the

laundry service and transform the note into bill of laundry. After that, the room boy will

give the order to the laundry staff. For the payment, the guest could directly paid at the

cashier or later on when check out time. Media used in this procedure of laundry service

are stationary and book.

Control that done in the procedure of laundry service is to record it again in

the book that prepared especially for record the laundry transaction.