CMA Final · Cost and Management Audit · Audit of Different Service Organisations
An operational auditor reviewing a hotel finds that room revenue per available room is falling although the occupancy rate is stable. Which is the most logical area to investigate first?
The auditor should first investigate the average room rate realised, including discounts and room-mix. Revenue per available room is occupancy multiplied by average rate, so with occupancy stable the decline must arise from lower realised rates rather than from depreciation, shareholding or auditor rotation.
- AAverage room rate realised, including discounts and room-mixCorrect
- BDepreciation method on building
- CNumber of shareholders
- DStatutory auditor's rotation
Explanation
Revenue per available room equals occupancy multiplied by average room rate. If occupancy is steady, the fall must come from the average rate realised, driven by discounts or a shift in room mix. The other options have no direct link to this revenue measure.
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