Room revenue, occupancy and rate controls
Risk: Rooms are sold, upgraded, comped, cancelled or settled without complete PMS evidence, approved rates or accurate occupancy reporting.
Controls
- Approved rate master
- Night audit review
- Complimentary room approval
- No-show and cancellation control
Tests
- Match sampled stays to reservation, check-in, folio, invoice and settlement
- Review rate overrides, upgrades and complimentary rooms
- Reconcile occupancy and RevPAR reports to PMS and GL
- Test late check-outs, no-shows and cancellations
Evidence
Reservation, guest registration, ID proof record, PMS folio, tax invoice, settlement record, night audit report and rate override approval.
OTA, travel agent and corporate billing
Risk: OTA commissions, travel-agent invoices, corporate rates, credit periods or receivable balances are misstated or unsupported.
Controls
- Channel manager reconciliation
- Approved contract/rate card
- Commission review
- Corporate ageing follow-up
Tests
- Reconcile OTA bookings to PMS, invoices and settlements
- Recompute commission and payment gateway charges
- Review corporate billing and ageing
- Test credit notes and write-offs
Evidence
OTA report, channel manager export, agent/corporate contract, invoice, settlement advice, commission working and receivable ageing.
Restaurant, bar, POS and cash/card/UPI settlements
Risk: F&B sales, voids, discounts, KOT/BOT, cash, card or UPI collections do not reconcile to POS and bank evidence.
Controls
- POS user controls
- Void/discount approval
- Daily settlement reconciliation
- KOT/BOT sequence review
Tests
- Match POS sales to KOT/BOT, invoices and bank/cash settlement
- Review voids, discounts and open checks
- Test card/UPI settlement ageing
- Compare covers, menu mix and gross margins
Evidence
POS Z report, KOT/BOT, tax invoice, void/discount log, cash sheet, card/UPI settlement report and bank statement.
Banquets, events and advance collections
Risk: Event revenue, minimum guarantees, deposits, cancellations, freebies or deferred income are not recorded according to contract terms.
Controls
- Event contract approval
- Advance and deposit tracker
- Banquet order review
- Post-event billing reconciliation
Tests
- Match event contract to BEO, deposits, final invoice and settlement
- Review cancellations and retention of advances
- Test free items and package inclusions
- Reconcile deferred revenue and old advances
Evidence
Event contract, banquet event order, advance receipt, function sheet, invoice, cancellation note and settlement proof.
Food, beverage, stores and cost controls
Risk: Inventory, wastage, spoilage, pilferage, recipe yield, bar stock or purchase consumption is not accurately recorded.
Controls
- GRN and quality check
- Recipe and yield master
- Inventory count
- Wastage/spoilage approval
Tests
- Match purchases to PO, GRN and vendor invoice
- Perform stock count for stores/bar/high-value SKUs
- Review food-cost and beverage-cost variance
- Test spoilage, breakage and staff meal records
Evidence
PO, GRN, vendor invoice, stock ledger, recipe/yield card, count sheet, wastage log, breakage register and approval.
Procurement, vendors and capex
Risk: Hotel purchases, maintenance, linen, amenities, repairs, capex or AMC spends are unsupported, split, related-party driven or not capitalised correctly.
Controls
- Vendor onboarding
- Quotation control
- Approval matrix
- Capex budget and asset tagging
Tests
- Review vendor KYC and related-party checks
- Test split purchases and emergency procurement
- Match PO, GRN/service note, invoice and payment
- Verify capex approval, tagging and capitalization
Evidence
Vendor master, quotation/tender file, PO, GRN/service note, invoice, payment proof, capex approval and fixed asset tag.
Payroll, attendance, tips and outsourced staff
Risk: Payroll, casual labour, service charge/tips, outsourced housekeeping/security or overtime is unsupported or incorrectly allocated.
Controls
- Biometric/roster control
- Payroll master review
- Outsourced manpower approval
- Tips/service charge policy
Tests
- Match payroll to roster, attendance and bank payment
- Review overtime, incentives and service charge distribution
- Test outsourced manpower invoices to deployment sheets
- Check leaver access and final settlement
Evidence
HR master, roster, biometric report, payroll register, bank proof, manpower invoice, deployment sheet, tips/service charge working and approval.
Licences, FSSAI, GST and statutory compliance
Risk: Food licence, excise/bar permissions, fire, pollution, shop establishment, hotel classification, GST or TDS compliance lapses without escalation.
Controls
- Compliance calendar
- Licence validity tracker
- GST rate review
- Notice and renewal escalation
Tests
- Check licence validity and renewal evidence
- Review GST rate classification for rooms, restaurant and outdoor catering
- Test TDS/GST return acknowledgements
- Age notices and pending compliance actions
Evidence
FSSAI licence, local licences, fire NOC, pollution consent where applicable, GST returns, challans, notices, renewal tracker and management sign-off.
PMS/POS access, interfaces and audit logs
Risk: Users can change rates, room status, voids, discounts, settlements, inventory or interfaces without review.
Controls
- Role-based PMS/POS access
- Leaver access review
- Interface reconciliation
- Audit-log monitoring
Tests
- Review PMS/POS users and privileged roles
- Test leaver and shared IDs
- Sample rate, room, void, discount and settlement overrides
- Reconcile PMS/POS to accounting interface
Evidence
PMS/POS user list, role matrix, HR exit list, audit log, interface exception report, override log and review sign-off.
