07 August 2009
The following may be a referable checklist:
1. Check whether the agent follow cash or accrual basis. Most probably it will be cash basis only.
2. Check the agreement of teh agent with different Airlines and verify the condition of getting the commission.
3. For airline agents there are two sort of commissions - one from the passenger and one from the Airline.
4. The commission from passenger should be booked in revenue on the cash basis immediately.
5. Say for example the airline will give commission on the monthly basis @ x% on the numbers of ticket sold. So we have to check whether monthly bills for the commission has been released or not.
6. If the agreement is that the commission bill should be raised for every 50/100/150 tickets sold then accordingly we have to see that the bill is raised accordingly.
7. Tour packages generally contains travel, accomodation, fooding and local travel. We have to check the agreement with the respective service providers and proper billing is doen to both the parties.
8. Discoutns given on tour packages should not be hampering the business.
9. Service Tax checking should be made
10. Most importqantly what is the method employed by the agent to have a record of bookings. Bookings can be made over Telephone, emails, in person etc.
11. The track that every booking made by the agent has been billed to the customer.
12. The revenue collected on behalf of the airline is transferred periodically.
CAclubindia
