Accounting Question

In 2024, the Internal Audit Division where you work asks you to carry out a special audit (investigation) of a 4-star (medium size) Hotel. The board of directors where you work asks you to create an investigative audit program (investigative audit procedure) to review and assess the reliability of the internal control system and operational efficiency of the hotel in order to avoid fraud for the following functions:

a. Hotel Revenue Function

b. Logistics function (Procurement of goods) Hotel

The program must be prepared using a risk-based approach (risk based audit) based on the identification of control activities (control activities) and control objectives (control objectives). As a prospective accountant, you are challenged to create an investigative audit program because in your opinion these two functions are very vulnerable to fraud (presumed fraud risk). You are asked to prepare this program for the benefit of your office.