Hotel Employee Fraud and Abuse - Audit Findings

The need for hotel internal audits has never been greater!

With employee turnover and staffing shortages at an all time high, many employees have very little training on established standard operating procedures, causing a breakdown of internal controls. A perfect recipe for employee fraud and abuse.

Common items found in our audits:

• failure to count cash banks on a regular basis resulting in a high level of cash shortages

• multiple segregation of duties issues with same employee sorting mail, posting checks, making daily deposits, and going to the bank

• unauthorized cash refunds

• discretionary guest reward points

• unauthorized guest room adjustments and credit card credits

• housekeeping room discrepancies

• bartenders doing their own liquor requisitions with full access to storeroom

• bartender ring on delivery failure

• unlocked draft beer and liquor after hours

• kitchen walk-in and coolers unlocked after hours

• failure to post event revenues when services are rendered

• building public exit doors unlocked

We provide onsite training to employees during our internal audits and on the spot assessments using the latest cloud based applications.

Many of these issues can lead to fraud and increased costs, which can be avoided by using an experienced independent outside auditor.

Internal Audits play a key role in minimizing the potential occurrence of fraud. Our auditors have considerable experience in understanding potential weaknesses in hotel operations, and instituting internal control procedures to minimize the occurrence of potential fraud.