Unlock the full potential of your financial operations with our Hotel Accounts Receivable and Credit Review Audit Work Program. This audit tool is designed to guide you through an extensive review of accounts receivable (AR) and credit management processes within hospitality environments. By leveraging this program, you can identify control gaps, optimize cash flow and mitigate risks that directly impact your property’s financial health. It offers a structured approach to evaluating AR and credit cycles, starting with process mapping and a segregation of duties matrix to highlight inefficiencies and oversight issues.

The work program also walks you through essential audit objectives, such as assessing internal controls, verifying compliance with company policies, and monitoring risk mitigation strategies. Detailed procedures help ensure accuracy in guest ledger maintenance, city ledger roll-forwards, and the reconciliation of credit card transactions, while also scrutinizing credit policy adherence, doubtful accounts and intercompany transactions. This tool doesn’t just stop at pointing out weaknesses—it empowers you to develop actionable recommendations for improving efficiency, effectiveness and fraud prevention. Whether you’re a controller, finance manager or audit professional, this tool equips you to safeguard revenue streams and enhance operational excellence.

Audit steps include:

• Obtain the daily roll forward of the guest ledger (from the front-office system daily revenue report) and city ledger (from the night audit AR summary).
• Discuss and assess the hotel’s procedures/controls over issuing guest rebates.
• Discuss the procedures employed by the hotel to monitor credit risks for both new and existing debtors.
• Ensure that all intercompany charges are debited to the general ledger and that these are reallocated at the month end to the correct amounts.