1. Verify the rental receipts and expenditures are accounted for on accrual basis. 2. Check the taxes payable on the rental receipts have been properly provided for eg., luxury tax, vat etc. 3. Verify whether the industry standard ratios are working out for the hotel. eg., gross profit ratio, net profit ratio etc. 4. Examine whether the periodical returns viz, VAT, TDS , Advance tax etc are properly submitted. 5. Verify whether the TDS provisions applicable for the service rendered by the hotel have been classified correctly in the accounts. 6. Ensure proper stores accounting is followed in the hotel using some recognised methods viz FIFO,LIFO, average price method, weighted average method etc. 7. Examine whether the accounting standards 1 to 29 as applicable to that kind of organisation is followed up by the client. 8. Also ensure if proper internal control system is prevailing in the hotel in the matters of revenue leakage, cost control etc. 9. Verify if the cash balance shown by the books are tallying with the physical balance.
CAclubindia
