Problem1. UTM Hotels is the listed company which runs the chain of some 40 hotels. The company has an established internal audit department that is based at the head office and that makes regular visits to the hotels.
The hotels provide business and tourist class accommodation. They also offer restaurants, bars, conference and leisure facilities which are open to general public as well as residents. The company operates a computerized central booking and billing system and stock and asset control system, both of that can accessed via terminals in the hotels. Access to the system is restricted by the use of password and all important expenditure is authorized through head office. The payroll is operated through head office. Hotel and regional managers are actively involved in setting of budgets and cash flow forecasting. On average, during the year, the chain has a 65% occupancy rate.
Required:
Question1. Explain six areas in which the internal audit department at UTM Hotels may check detailed transactions and balances.
Question2. Explain four areas in which internal audit department at UTM Hotels may perform reviews of system or operational performance.