You have recently been appointed auditor of Leisure Hotels Limited, a company which owns several hotels. the company has an established internal audit department , which operates at the head office and visits the hotels for audit on regular basis .each hotel has computer which records the booking of rooms for overnight accommodation and produces the billings account for each guest.
Required:
(a) Describe the work you would expect to be carried out by the internal audit staff of leisure hotels Limited (11marks)

(b) Explain the factors you would consider and the work you would perform to enable you to assess the extent to which you could rely on the work of the internal staff (5Marks)

(c) Assuming that you conclude that the work of the internal audit staff reliable, describe the effect this would have on your audit work. (4marks)

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