Step

Entity Name:
Engagement Name:
Period End:
Title:

Reference:2400-1
Paper File? Yes

MV Reethi Rah Resort Private Limited

MV Reethi Rah Resort Private Limited - 2009
12/31/2009

Completed By:Rajith Nuwanpriya/LK/ABAS/PwC 01/28/2010

Reviewed By: Jatindra Bhattray/LK/ABAS/PwC 02/13/2010
Status: Reviewed
(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, expansive
and equally luxurious. Room charges range from US $ 800 to US $ 6,500, which will vary between the seasons. 65% of the revenue to the total
revenue 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 charge
for 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 service
outlet. "SPA SOFT" is used in SPA to record revenue which has interface with "OPERA" on line system.

1. Rooms rates, applicable to

Sales and Marketing departme
credit management cycle for r

2. Reservations staff enters th

Room Revenue Cycle

Start

Rooms rates are applicable to

travel agents & others
customers are decided by the
S&M dept and sent to the
reservations

Refer subprocesses
Rates

Reservations enters the rates

into the system

Refer subprocesses
Rates

3. Guests can make an early re

Central) Kerzner International
Website / e-mails. Once reserv
Confirmation of reservation le
customers via e-mail. Booking
security code from the custom

Receive the
reservations through
travel agent and
directly

Reservations staffs enter the

reservation details to the front
office system
3

Front office
system (Opera)

Receive the
reservations through
travel agent and
directly

Reservations staffs enter the

reservation details to the front
office system

Front office
system (Opera)

Guest check-In

Registration cards for all the

check-ins at the time of
check-in are printed

Registration cards

4. When the guests walk- into

system and print the Registrat

Registration cards

Mark the check-in time in the

registration card & signed by
the guest & the front office
manager and enters the
details in the front office
system.

the guests, check-in and check

system.
The Company enters into con
the Director of Sales and Mar
room is confirmed before sign
Once the reservations are con
to the front office system OP
(block) the rooms and prepare

Front office
system (Opera)

5. Registration card is signed

Registration card is signed by
profile is updated by front off
or assigned official. If the gue
travel agent for the room char

Front office
system (Opera)

Night audit process takes

place & recognize the room
revenue for the respective
date.
6

6. Night Audit Process takes p

occupied room folios is charg
follows
Room folio number Dr
Room revenue Cr
Guest ledger

Front office
system (Opera)

Night audit process takes

place & recognize the room
revenue for the respective
date.

In "ACCPAC"
Guest ledger Control A/C - D
Room revenue A/C - Cr
During night audit process, ni
office system ("OPERA"),
Reservation corresponden
Daily check-in and check Bed tax calculation

Guest ledger

At the time of Guest

check-out

Front office
system (Opera)

Guest directed by a
travel agent

No

Print a folio information bill for

both room charges & other
services consumed & obtain
guest acknowledgement

Folio information bill for

both room charges &
other services (1)

8
Yes

7 & 8. At the time of Check-o

folio information bills for (a)
generated and only (b) is forw
charges are borne by the trave
If the guest is not directed by
room charges and other servic
acknowledgement.
If the guest agrees with the pa
card, etc as the acknowledgem
Double entry in "OPERA and

Folio information bill

for room charges (2)
Front office
system (Opera)

Print a folio information bill for

room charges & other
services consumed
separately

Folio information bill

other services
consumed (3)

Folio information bill for

both room charges &
other services (1)
Any disputes
in billing
Folio information bill

Yes

Reconfirm with the

relevant restaurant
bills, bar bills etc and
confirm/correct the
charges accordingly

OR

If the dispute cannot be

resolved, reverse the revenue
from system with the approval
of proper official

system (Opera)

services consumed
separately

Folio information bill

other services
consumed (3)

Folio information bill for

both room charges &
other services (1)
Any disputes
in billing

Yes

Folio information bill

other services
consumed (3)

Reconfirm with the

relevant restaurant
bills, bar bills etc and
confirm/correct the
charges accordingly

City Ledger A/C - Dr

Room folio/Guest ledger - Cr
OR

If the dispute cannot be

resolved, reverse the revenue
from system with the approval
of proper official

If the settlement is done by gu

Cash A/C - Dr
Room folio/Guest ledger - Cr

9
No

Front office
system (Opera)

NO

Credit approved
guest

Raise the invoice in 2

copies on receipt of the
payment & handover
one copy to the guest

Guest ledger
invoice

11
Refer
treasury
processes

Yes
Billing voucher (if
guest \is directed
by a travel agent)

Authorized letter,
if the guest is a
cooperate guest

Citi ledger

Citi ledger
Front office cashier
selects the payment
mode as citi
10

Upon receiving the acknowled

he/she is a credit approved gu
should have the travel Agents
after checking the said docum
print a folio invoice.
If the guest doesnt have credi
copies and hand over one to th

Guest
ledger

10

Finance dept open

receivable accounts for
credit guests and print
the citi ledger invoice.
12

9, 10 & 11.If there is any disp

relevant restaurant & bars and
rebate the revenue from the sy
official. The guests are charge
place the normal way.

Citi ledger
Citi ledger
invoice

12. Once the folio invoices ar

Citi ledger

Finance dept open

receivable accounts for
credit guests and print
the citi ledger invoice.

Citi ledger
Citi ledger
invoice

12

Accounts Department opens i

automatically passes the credi
Citi Ledger Invoices.
Credit Manager or AR Assista
there is any discrepancy such
Manager.

Send the citi ledger

invoices to the
customer

Swift copy for

payment

AR raises the
receipt through the
system

Receipt for the

payment

13. Upon receiving the payme

through system.
Bank A/C - Dr
Travel agent or Citi ledge

13

Receipt for the

payment

AR credits the guests

individual receivable
amount with the receipt
amount
14

End

Citi ledger

14. When cashiers raises the r

End

Business Process:
Ref.
SubNo.
process/
Transaction

3 Booking
5,6 Night audit
3,8 Ledger maintenance

8,9 Ledger maintenance

Ledger maintenance

Description of control activity, including its objective

The confirmation registration forms are signed by the guest as confirmed,

confirmed by the Reservation manager and entered in the system.
Revenue relevant to the rooms are recognised at the time of night audit
process and the front office system is automatically updated .
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
At the end of the day, all ledgers are updated in the OPERA .
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 Excutive prepares monthly
reconcilation between ACCPAC and OPERA for Citi ledger.

Information Contribution to Frequency

processing
Financial
of the
objective
Statement
control
C, A, V, R
assertions
C, A, CO, EO,
RO, VA, CL
C,O
A,E,R/O
D

P
or
D

V,C

A,V,CO,C,R/O,E

C,A,V

V,A,C
C, A

A,C,V
C ,A ,CO

D
D,M

P
P

Restaurant Revenue Process

Start

Guest walk-in
to the outlet

1. Guest makes the order selected from the m

Take the order
from guest as
per Menu
1

Pick up menu
prices from the
MICROS system

Open a check in the

MICROS system,
enter the order and
save.
2

2. The orders made by the guests are entered b

opening a check in the MICRO System and
the system itself.
MICROS
system

3. Once a check is saved in the system, a Kitc

automatically. The number of checks opened i
The Kitchen
Order Ticket is
printed at the
kitchen
3

Kitchen Order
Ticket

prices from the

MICROS system

enter the order and

save.
2

MICROS
system

tables opened during the day.

The Kitchen
Order Ticket is
printed at the
kitchen
3

MICROS
system

Kitchen Order
Ticket

Serve the order

and print the bill

4. The order is served to the guest and raise a

Rates applicable for each Mini bar item have b
are entered in to the MICRO System by the IT
is selected for billing, the system automaticall

Outlet bill

5. The outlet waiter obtains the guest's acknow

the guest) in the bill. A copy of bill is handed
Obtain
acknowledgement
from the guest
5

Acknowledged
outlet bill

Acknowledged
outlet bill

Select the room folio

number and select the
settlement mode as citi
in the system.

6 & 7. The outlet Cashier enters the room num

and the room folio is debited and the relevant
automatically in both system ("MICROS'' and
interface with "OPERA".
MICROS
system

OPERA system
Guest ledger

Acknowledged
outlet bill

Acknowledged bills
handed over to finance
department for night

Through the system

interface the particular
Guest ledger in OPERA

Acknowledged
outlet bill

Select the room folio

number and select the
settlement mode as citi
in the system.

MICROS
system

OPERA system
Guest ledger

Acknowledged
outlet bill

Acknowledged bills
handed over to finance
department for night
audit process
8

Through the system

interface the particular
Guest ledger in OPERA
is updated.

8. At the end of the closure, the signed bills ar

with the MICROs day financial reports to ve
income.

1
7

9. Night auditor checks the MICRO's sales wi

If there is any discrepancy noted, night audito
by the income auditor in the following day. if
close the day in the "MICRO".
Double entry in "OPERA and ACCPAC"
Roomfoilo/Guest ledger A/C - Dr
Food/Beverage/Wine income A/C - Cr

Night auditor checks

the MICROS sales &
OPERA sales and
recognize revenue and
close the day
9

Collection from the guest

for all the consumption are
done at once at the time of
check out and the steps
are described in the room
revenue function

End

Refer Room
Revenue
Process

Refer
treasury
processes

Collection from the guest for all the consumpt

out and the steps are described in the room rev
process

Business Process:

Ref.
No.

2
3
5,6
8

Subprocess/
Transaction
Ordering
Ordering
Billing
Night audit process

Description of control activity, including its objective

Information
processing
objective
C, A, V, R

A check is opened in the MICRO system for every order received.

Kitchen Order Ticket is automatically printed at the kitchen,
Outlet bills are acknowledged by the guest as confirmed.
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".

A,C
A
C,A
C,A

Contribution to Frequency
Financial Statement of the
assertions
control
C, A, CO, EO, RO,
VA, CL
A,C,R/O,E
V
E,R/O,V
A,V

P
or
D
P

D
D
D

A
or
M
A

P
P
P

A
MGT
MGT

1. Guest buys goods in Boutique outlets

Boutique Revenue Cycle

Start

Guest buys goods in

Boutique outlet
1

Detail bill

2. Outlet official enters room number of the

prints the detail bills. Prices of the items ha
when the Outlet official enters the items' de
automatically. Hence the "MICRO" has inte
folio and outlet revenue get updated in "OP

Enter Room No of the

guest & the items
details into MICRO
and print the detail bills
MICROS

Credit card
payment

Yes

Collect payment
through credit card
machine
4

3 & 4. If the guest wishes to pay by credit c

machine. "MICRO" and "OPERA" record th

No

Detail bill

Bill is acknowledged by

Acknowledge bills is

Credit card receipt

Credit card
payment

through credit card

machine
4

No

the room folio. Detail bill and credit card pa

guest. Copy of both bill and card payment s

Detail bill

Through the system

interface the particular
Guest ledger in OPERA
is updated including
credit card payment

Bill is acknowledged by
both guest and officer of
boutique.

Acknowledge bills is
forwarded to Finance
dept

Credit card receipt

Front Office
OPERA

5 & 6. Copy of acknowledged bill, credit ca

forwarded to Finance department for night a
Detail bill

Night audit checks the

MICROs bill with
OPERA
7

Discrepancies
identified

No

Close the day

transactions and
recognize the revenue

End

8
Yes

Give the notification to

Rectify the
discrepancies next

End

7, 8, 9 & 10. Night auditor checks the MICR

OPERA for the particular outlets. If there is
the check list which is resolved by the incom
recognize the revenue for the day and close
Double entry,

Discrepancies
identified

No

Close the day

transactions and
recognize the revenue

End

Room folio A/C - Dr

Boutique revenue A/C - Cr

Yes

Give the notification to

income auditor & Credit
manager

Rectify the
discrepancies next
working day and
recognize the revenue

10

If it is consignment sales, depend on the con

ACCPAC
Boutique revenue A/C - Dr
Particular consignment payment A/C - Cr
If it is posted to room folio, collection from
once at the time of check out and the steps a
Please refer room revenue process.

End

`
Close the day
transactions

Refer
treasury
processes

11

End

Business Process:

Ref.
No.

Subprocess/
Transaction

7,10 Night audit process

Description of control activity, including its objective

Night auditor checks the MICRO's sales and credit card

collection with OPERA for the particular outlets. If there is any

Information Contribution to Frequenc

processing
Financial
y of the
objective
Statement
control
C, A, V, R
assertions
C, A, CO, EO,
RO, VA, CL
C,A

A,V

P
or
D

A
or
M

MGT

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".

1. SPA treatments rates are decided by

Please refer rate process.

SPA Revenue Process

Start

SPA treatments rates are

decided by Manager of
SPA and entered into the
system

Refer subprocesses
Rates

Guest reserve the

service over the
phone or through
email

2. Guest reserve the service via phone

the treatment and time, block the time
Request from the
guest

Allot the time in

the system
based on guest
request

SPA SOFT
system

Consultation
form

Consultation
form is filled and

Acknowledged
consultation
form

Request from the

guest

the system
based on guest
request

SPA SOFT
system

Consultation
form

Consultation
form is filled and
acknowledged
by the guest.

Acknowledged
consultation
form

3 & 4. Guest signs the consultation for

wants. Consultation form is handed ov
therapist, who does not serve any treat
end of the service, therapist signs out

Acknowledged
consultation
form

Serve the guest and

signed the
consultation form by
therapist

Service completed
consultation form

Service completed
consultation form

SPA material
sales

Therapist signs out system for

completed service and select the
room folio number & select the
settlement mode as citi in the
system. If there is any sales of SPA
material, enters the material code
into the system. Raise the invoice

Service invoice
SPA SOFT
system

OPERA system
Guest ledger

Through the system

interface the particular
Guest ledger in OPERA
is updated.
7

Service invoice

Service invoice is
acknowledged by
guest
6

Acknowledged invoice
handed over to front

5, 6, 7 & 8. When therapist signs out s

folio number & select the settlement m
SPA material, enters the material code
sales in "OPERA" and "SPA soft" get
Raised invoice is acknowledged by gu
settlement at the time of check out.

OPERA system
Guest ledger

Through the system

interface the particular
Guest ledger in OPERA
is updated.
7

Service invoice

Service invoice is
acknowledged by
guest
6

Acknowledged invoice
handed over to front
office for the settlement
at the time of check-out

9. Printed invoice in "SPA soft" is sen

SPA reception.

Service invoices

Printed service
invoices handed over
to finance department
for night audit process
9

10. In the night audit process, Night au

and posting to the room polio. Recogn
process is almost nil.
Double entry,
Room folio A/C Dr
Particular Income Cr

Night auditor checks

the SPA SOFT sales &
OPERA sales and
recognize revenue and
close the day
10

Collection from the guest

for all the consumptions
and services are done at
once at the time of check
out and the steps are
described in the room
revenue function

End

Refer Room
Revenue
Process

Refer
treasury
processes

Collection from the guest

for all the consumptions
and services are done at
once at the time of check
out and the steps are
described in the room
revenue function

Refer Room
Revenue
Process

Refer
treasury
processes

End

Business Process:

Ref.
No.

Subprocess/
Transaction

2,3

Reservation

Servicing

5, 10

Night audit process

Description of control activity, including its objective

Treatment is only served to the guest who reserved previously.

System shows the guset details and staff allocated for that
treatement once it is reserved.
Treatment is only served the guest who has signed the consultation
form.
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.

Information Contribution to Frequency

processing
Financial
of the
objective
Statement
control
C, A, V, R
assertions
C, A, CO, EO,
RO, VA, CL
A,C

A,C,R/O,E

C,A

C,E,R/O,V

Multiple
D
D

P
or
D

A
or
M

A
P

MGT

MGT

Transport Income Cycle

Start

Receive the
reservations through
travel agent and
directly

Reservations staffs enter the

reservation details including
transfer way to the resort to
the front office system

Front office
system (Opera)

1. Reservations staffs enter the reservation details incl

the front office system at the time of reservation. For m
refer room revenue process number 3.

Guest check-In

Front office staff charges the

transfer income to the
concerned room no at the
point of check in.

2. Front office staff charges the transfer income to the c

check in of the guest. Room folio and transfer income
Front office
system (Opera)

Front office
system (Opera)

Print the daily event report

and checks whether the
transfer charges were
charged to all check in guest.
3

3. Front office staff prints the daily event report at the e

the transfer charges were charged to all check in guests
Daily event report

Front office
system (Opera)

Print the daily event report

and checks whether the
transfer charges were
charged to all check in guest.

Daily event report

Daily event report

4. Night auditor checks the no of arrivals and transfer i

reference to daily event report.
Guest ledger A/C - Dr
Transfer income A/ C -Cr

Night auditor checks the no of

arrivals and transfer income
booked in the system.
4

5. At the end of the day night, if any discrepancy is ide

report to income auditor for corrections. Discrepancy i
the Income Auditor.

At the end of the day night, if

any discrepancy is identified,
night auditor forwards the
report to income auditor for
corrections.
5

Collection from the guest

for all the consumption are
done at once at the time of
check out and the steps
are described in the room
revenue function

Refer
treasury
processes

Collection from the guest

for all the consumption are
done at once at the time of
check out and the steps
are described in the room
revenue function

Refer
treasury
processes

End

Business Process:

Ref.
No.

4,5

Subprocess/
Transaction

Description of control activity, including its objective

Night audit process 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.

Information
processing
objective
C, A, V, R
C,A

Contribution to Frequency
Financial Statement
of the
assertions
control
C, A, CO, EO, RO,
VA, CL
A,V,C

Daily

P
or
D

A
or
M

MGT

1. Sports and recreation manager receives

Sports and recreation income cycle

Start

Receive the guest

request over phone

Sports
and recreation
`
manager receives guest
request for the activities
over the phone. Prepare
guest request.

He/she prepares guest request for activitie

Guest request

2. Sports and recreation manager arranges

who are responsible for the activities, serv

Guest request

Arrange the requested

activities to `the guest and
` according
serve the guest
to the request.
2

Sports and recreation

manager enters all the
services charges by selecting
room folio number in the
MICRO system
3

3. Sports and recreation manager enters al

number in the MICRO system. Room foli
activities in both system gets updated.
MICRO
system

OPERA
system

Sports and recreation

manager enters all the
services charges by selecting
room folio number in the
MICRO system

MICRO
system

OPERA
system

4 & 5. Print the detail bill and get the ack

acknowledged bill is sent to front office f
Print the detail bill and get
the acknowledgement
from the guest

Acknowledge bill

Acknowledge bill

Copy of acknowledged bill

`
is sent to front
` office for
collection.
5

Acknowledge bill

Transaction
Details
` for the
`
day

Copy of acknowledged bill

and details of transactions
for the day are forwarded to
Finance dept for night audit
process.
6

Night auditor checks the

MICROS income & OPERA
income and room folio
updation and recognize

6 & 7. Copy of acknowledged bill and det

Finance dept for night audit process. Nigh
income and room folio updation and reco

Transaction
Details
` for the
`
day

Finance dept for night audit

process.
6

Night auditor checks the

MICROS income & OPERA
income and room folio
updation and recognize
revenue and close the day
7

Collection from the guest

for all the consumption are
done at once at the time of
check out and the steps
are described in the room
revenue function

Refer
treasury
processes

End

Business Process:

Ref. No.

6,7

Subprocess/
Transaction

Night audit

Description of control activity, including its objective

Copy of acknowledged bill and details of transactions for the day are
forwarded to Finance dept for night audit process. Night auditor checks the

Information
processing
objective
C, A, V, R

C,A

Contribution to Frequency
Financial
of the
Statement
control
assertions
C, A, CO, EO, RO,
VA, CL
C,A
Daily

P
or
D

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.
Introduction
Staff shop and bar income

Room rates

1. Sales and marketing department gathered necessary informa

rate, market demand and future guest arrivals etc.. from intern

2. Consider seasonal demands and decide the room rates based

Room rates process

Start

Necessary information
are gathered from
internal and outsides
sources.
1

Consider the demand

periodically and decide
the rates by DoS&M,
DoF & GM.
2

Rates decided are

documented and signed
by the GM, Dos & DoF.

Decided rates list

Decided rates list

Decided rates list is

sent to cooperate office

Approved rates list

3. Decided rates are documented and signed by the General M

Finance of the resort.

Rates decided are

documented and signed
by the GM, Dos & DoF.

Decided rates list

4. Decided rates list is sent to cooperate office. Rates are appro

approved with the Budget by board of Directors.
Decided rates list

Decided rates list is

sent to cooperate office
US. It is approved by
Cooperate office

Approved rates list

5. Rates applicable to travel agents are sent to travel agent for

Rates applicable to
travel agents are sent to
travel agent for their
confirmation

Rate confirmation

6. Once they confirm the rates codes are created in the system.
Approved rates list

Create necessary rate

codes in the system

Front office
system (Opera)

7. Rates applicable for particular codes are entered into the sys
Rates slabs are entered
into the system under
the rates codes created.
7

Rates slabs are entered

into the system under
the rates codes created.
7

8. Next reservation official (other than , who enters the rates) c

Rates entered is
checked by the next
reservation official.
8

Room
revenue
activity no 3

Room
revenue
activity no 6

9. At the end of the day, night auditor checks the arrival list an
night auditor marks in the check list which is forwarded to cre

Night auditor checks the

system arrival list with
the correspondence
every day and confirm
the correctness.
9

activity no 6

Night auditor checks the

system arrival list with
the correspondence
every day and confirm
the correctness.
9

10. Daily flash report including arrival details and rates are rev
Finance and Director of Sales and Marketing by the following

Front office
system (Opera)

Daily event reports including

guest arrival details & rates
prepared by relevant dept and it
is reviewed & discussed by GM,
DoF & DoS by following day.
10

End

Business Process:

Ref.
No.

Subprocess/
Transaction

3 & 4 Room rates

Description of control activity, including its objective

Decided rates are documented and signed by the General Manager,

Information
processing
objective
C, A, V, R

A,V

Contribution to Frequency
Financial
of the
Statement
control
assertions
C, A, CO, EO, RO,
VA, CL
A,O
Annually

P
or
D

A
o
M

Room rates

N/A System control

Director of Sales and Marketing and Director of Finance of the

resort. Decided rates list is sent to cooperate office. Rates are
approved by cooperate office (Kerzner in US). Decided rates are
approved with the Budget by board of Directors.
At the end of the day, night auditor checks the arrival list and rates
with the correspondence. If there is any discrepancy, night auditor
marks in the check list which is forwarded to credit manager and
income audit for following up.
Reservation staffs only have access to rates changes.

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

C,A,V

C,A,EO

Daily

A,O

N/A

Business Process:
Ref.
No.
3

Validation Procedures

Results

The confirmation registration forms are signed by

We selected 60 guests arrived during August ,
the guest as confirmed by the Reservation manager September and November 2009 and examined the
and entered in the system.
guest registration forms.
We examined the guest registration forms to ensure
the occurrence of the transaction.

Weakness
Identified?
(Yes/No)
[Link]
No

Report to Client
(Yes/No)

No

No

No

No

No

No exception noted
5,6

3,8

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

All the room income has been credited in the system We checked the 60 days revenue recognition with
on the same day , in the same order. Accounts
OPERA.
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
No exception noted.

ACCPAC.
All the transactions are uploaded by the income
We examined the following months citi ledger
Auditor in accounting system (ACCPAC) on a daily
reconciliation between ACCPAC and OPERA during the
basis. Assistant Director of Finance reviews,
year 2009.
approves and authorizes the report. Daily MIS
report (Flash report) is generated from "opera" for
Reviewed
Approved
Month
management purpose. A R Executive prepares
by Ass.DoF
by DoF
monthly reconciliation between ACCPAC and OPERA
March
v
v
for Citi ledger and it reviewed by Assistant Director
July
v
v
of Finance and approved by Director of Finance.
August
v
v
We examined the citi ledger reconciliation between
ACCPAC and OPERA.
October
v
v
November

December

No

No

No exception noted.

Business Process:
Ref.
No.
8

Validation Procedures

Results

Night auditor checks the MICRO's sales with OPERA sales for We reperformed the night auditor works and checked the
the particular outlets and discounts given by the outlets with
revenue recognition from MICROS to OPERA and to ACCPAC
proper approval. If there is any decrepancy noted, night auditor for 60 days.
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.
No exception noted.

Weakness
Identified?
(Yes/No)
[Link]
No

Report to Client
(Yes/No)
No

Business Process:
Ref.
No.

Validation Procedures

Results

7,10 Night auditor checks the MICRO's sales and credit card

We reperformed the night auditor works and checked the

collection with OPERA for the particular outlets. If there is revenue recognition from MICROS to OPERA and to ACCPAC
any discrepancy noted, night auditor marks in the check list for 60 days.
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".
No exception noted.
We checked the revenue recognition from MICROS to
OPERA and to ACCPAC.

Business Process:
Ref.
No.
5,10

Validation Procedures

Results

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.

Weakness
Identified?
(Yes/No)
[Link]
No

Weakness
Identified?
(Yes/No)
[Link]
No

Report to Client
(Yes/No)
No

Report to Client
(Yes/No)
No

Business Process:
Ref.
No.
4,5

Results

Night auditor checks the no of arrivals, departures and transfer We reperformed the night auditor works and checked the
income booked in the system with reference to daily event report. revenue recognition from OPERA to ACCPAC for 60 days.
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.
No exception noted.
We checked the revenue recognition from OPERA to ACCPAC.

Business Process:
Ref. No.

6,7

Validation Procedures

Validation Procedures

Weakness
Identified?
(Yes/No)
[Link]
No

Results

Copy of acknowledged bill and details of transactions for the day are We reperformed the night auditor works and checked the
No
forwarded to Finance dept for night audit process. Night auditor
revenue recognition from MICROS to OPERA and to ACCPAC
checks the MICROS income & OPERA income and room folio updation for 60 days.
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.
No exception noted.

Report to Clien
(Yes/No)
No

Weakness
Identified?
(Yes/No)
[Link]

Repo
Cli
(Yes
No

Staff shop and Bar

Business Process:
Ref.
No.

Validation Procedures

Results

8,9,10 Night auditor checks the MICRO's cash and credit sales with OPERA We reperformed the night auditor works and checked the
No
and check the staff account updation in OPERA. If there is any
revenue recognition from MICROS to OPERA and to ACCPAC
discrepancy noted, night auditor marks in the check list which is
for 60 days.
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.
No exception noted.

Room rates
Outlet menu prices
Boutique items prices
SPA treatement charges
Transport charges
Sports and recreation charges

Weakness
Identified?
(Yes/No)
[Link]

Report to
(Yes/
No

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:
Maintenance

Reviewed

Edit History: