Prepare an audit program which responds to risks identified. Description / Main assumptions The audited hotel is
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Question:
Prepare an audit program which responds to risks identified.
Description / Main assumptions
- The audited hotel is a luxury hotel located in the centre of Nice.
- The hotel is also known for his prestigious restaurant, and organize seminars
Foreign clients represent approximately half of the occupation each year.
Objective:
You must prepare a presentation explaining the audit strategy / audit program of a hotel for year-end, by answering the following questions.
- Identify risks of the activity, and in particular inherent risks related to the following classes of transactions:
- Sales and Trade receivables
- Purchases and trade payables
- Human resources process
- Identify significant accounts
- Which internal controls could answer audit assertions related to the accounts of your class of transactions?
- During the period, you have been aware that a fraud organized by several employees has been identified. Therefore, management has changed during the year, and you cannot rely on internal control. Describe your audit plan at year-end (tests to perform in relation with audit assertions) for the following classes of transactions:
- Sales and Trade receivables
- Purchases and trade payables
- Human resources process
(Distinguish between tests of transactions and tests of balances)
Describe in detail each step of your audit program (i.e. provide definition of analyzed ratio, explain how you choose items to be tested, …).
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