Internal control: Faults and frauds prevention tool for hotel

Ill ABSTRACT Faults and frauds are the risks that prevent the hotel from reaching its purposes. Hotel management is responsible for preparing an environment in which faults and frauds are decreased. This responsibility can be fulfilled by developing and implementing an effective internal control. While it is impossible to create a fault and fraud free condition, in the case of effective internal control, faults and frauds will be minimized. In this study, the ways of developing and implementing the internal control by minimizing faults and frauds are demonstrated. Initially, faults and frauds and internal control, based on literature review, are explained in detail and then the ways of developing internal control are denoted according to faults and frauds which are faced at hotels. In order to explain the ways of developing and implementing internal control systematically, the aspect of operational cycles is used. In order to make operations effective in hotels, the cycles of guest services, revenue, expenditure, property operation, strategic planning and reporting must be worked together. After demonstrating internal control policies and procedures that should be included in each cycle, the application of this process is attempted to be diagnosed. The observation and face-to-face interview methods were used to examine the internal control in Dedeman Istanbul which is being affiliated by Dedeman Hotel Co. that founded the first hotel chain in Turkey and has been instituted rapidly; then the power of internal control minimizing faults and frauds in Dedeman Istanbul is denoted. How the human oriented faults and frauds cannot be controlled, internal control does not have an efficiency limitation as well. In the sector, it was seen that, internal control is constantly developing and will continue to develop by the support of technology. In addition, the more the effectiveness of internal control is, the higher the achivement of reaching the purposes of hotels and managers will be.