Audit Process for Restaurants and Hotels

When opening a restaurant or café, managers often face significant challenges in managing the restaurant business (F&B industry). Managing a restaurant may seem like a simple task, but in reality, it requires extensive knowledge across various fields, from commerce to production and service business. Therefore, effective restaurant management and risk control will undoubtedly have certain peculiarities.

We are a team of auditors with in-depth experience in the restaurant and hotel sector, having helped our clients resolve numerous issues through our restaurant audit services. This helps clients manage risks and improve business results, thereby achieving business goals in the most effective way.

TGS VietNam consists of consulting and auditing experts with deep expertise in the F&B industry, comprehensive knowledge of Vietnamese legal regulations, and international audit methods. Not only do we adhere to domestic and international auditing standards, but we also emphasize improving operational processes and evaluating internal control systems in the F&B industry. With a structured knowledge base about the F&B sector, TGS VietNam has developed its own auditing process tailored to the F&B industry based on Vietnamese and international auditing standards. Our experts have outlined the basic audit process for the F&B industry as follows:

Audit Process and Scope of Work for Restaurant and Hotel Financial Statements

For the proposed service, we summarize the approach, activities, and expected results as follows:

1. Audit Plan for Restaurant and Hotel Financial Statements

We will immediately implement the audit plan as outlined below after we are appointed as the auditor for the restaurant. The audit we will conduct will be planned in detail for the F&B industry through the following phases:

1.1 Planning the Audit of Restaurant and Hotel Financial Statements

• Identify objectives, scope, and methods of execution.

• Meet and discuss the plan with the Board of Directors and introduce the consulting team.

• Collect general information about documents, accounting books, and financial statements of the restaurant.

• Perform a preliminary review of the accounting files and financial statements, as well as the restaurant's accounting system.

• Develop a comprehensive audit plan for the restaurant’s financial statements.

• Choose auditors with F&B expertise and assign tasks within the audit team.

• Select a draft of the detailed audit program according to the F&B industry.

1.2 Information Collection and Business Operations Review, Developing the Audit Strategy

• Collect all necessary records and documents for the audit.

• Collect real-time information from the company’s office and relevant branches.

• Review and examine the internal control system and the restaurant’s accounting system, including:

  • Management objectives and strategies from the Board of Directors.

  • Evaluate the organizational structure and management of the restaurant, including staff allocation for each restaurant.

  • Evaluate the restaurant’s internal control environment by understanding the company’s culture.

  • Collect financial management policies, restaurant management processes, such as personnel management, food safety management, and operational procedures for the restaurant system software.

1.3 Conducting the Financial Audit

• Understand, collect, review, and evaluate purchasing procedures, payment procedures, commitments, and the restaurant’s credit policy.

• Understand, collect, review, and evaluate the procedures for receiving, shipping, and managing materials and goods at the restaurant’s warehouse.

• Check inventory value, existence, and inventory management methods via inventory procedures.

• Check and evaluate the method used to calculate product costs in the F&B sector.

• Select popular and best-selling dishes, then check and assess the material standards required to prepare those dishes in line with the F&B industry.

• Check and evaluate purchasing procedures for equipment, acceptance, and payment for construction works at the restaurant.

• Check and evaluate revenue recognition and cash collection policies through restaurant management.

• Check and evaluate the structure of the cost of goods sold relative to revenue in the F&B industry.

• Check and evaluate the document flow system and financial information across the company.

• Examine the Accounting System and Prepare Financial Statements:

  • Review the restaurant's accounting records and accounting books.

  • Check the consistency between original documents and entries.

  • Provide advice on collecting original documents to ensure their legality and legitimacy.

  • Assist the company in completing the accounting system according to Vietnamese Accounting Standards, Vietnam’s Accounting System, and other current regulations on accounting and taxes in Vietnam.

  • Provide advisory services on handling and accounting complex transactions as requested by the company.

• Examine the Company’s Financial Statements and Annual Implementation Plan Approved by the Board of Directors:

  • Review financial statements and assess high-risk transactions and balances such as:

    • Inventory in and out, customer receivables, payables, revenue recognition, cost, and cost of goods sold.

    • Examine the valuation and existence of inventory balances and inventory management methods.

    • Verify compliance with the company’s accounting system with business laws, tax laws, and other related regulations.

    • Assist in preparing the restaurant’s financial statements for the fiscal year in accordance with Vietnamese accounting standards and tax laws.

• Identify and classify funding sources: additional capital and loan capital.

• Confirm bank account balances, investments, receivables, and payables at the end of the fiscal year.

• Observe the inventory of cash, materials, goods, and fixed assets to ensure existence at the end of the fiscal year.

• Review the recording of the company’s key fixed assets and assets in each department at the end of the accounting period.

• Analyze key indicators related to assets, profitability, and solvency by assessing receivables and payables.

• Conduct additional audit procedures or replacements as we deem necessary in each case.

1.4 Prepare Reports and Present Audit Results to the Restaurant

• Discuss the drafts with the restaurant’s Board of Directors.

• Finalize the audit report and officially release it.

• Summarize results and resolve issues arising during the audit.

• Propose solutions, adjust accounting records and financial reports, and submit adjustments to regulatory authorities.

• Prepare a draft post-audit financial report and a management letter outlining key issues found during the audit for restaurant improvement.

• Send the post-audit financial report and management letter draft to the Board of Directors after completing the detailed audit.

• Discuss audit results and other findings with the Board of Directors.

• Finalize and officially release the post-audit financial report and management letter.

• Consult and advise the Board of Directors on important issues of concern.

📢 TGS Vietnam is ready to support you with zero registration fees, helping you take confident steps in your entrepreneurial journey! 🚀

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📞 Hotline: 0919 191 448
📧 Email: info@tgsvietnam.com.vn
🌐 Website: tgsvietnam.com.vn
🏢 Address: 6 Vo Van Kiet Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City

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