In the hospitality industry, internal audit is a control mechanism to verify that the operations and financial activities of the business are carried out in accordance with legal requirements and are used effectively to achieve management objectives.

Internal auditing is a review process that covers all departments of the business and is critical to the success of any business. In the hospitality industry, internal audit may cover several topics such as:

1. Checking the accuracy of the financial records of the enterprise,
2. Determining whether the financial controls of the enterprise are sufficient,
3. Evaluation of the business’s compliance with tax laws,
4. Evaluation of the quality of guest services and operations of the business,
5. Evaluation of the corporate governance structure of the enterprise.

Internal auditing provides valuable information to the management of the business and helps the business achieve its management objectives. It also verifies that the business meets legal requirements and that its financial records are accurate, thereby protecting the business’s financial reputation.