There is no doubt that the casino is a multi billion dollar business. The flow of financial transactions is quite fast. Casino clients are people who willingly go to casino to spend money in a game of wager involving their favorite casino games. Money is hastily converted into chips and the wagering goes on and on. The casino financial institution is open 24 hours and 7 days a week. It operates even on holidays where stream of visiting gamblers are more. The business operation of casinos is endless and admittedly very lucrative.
Because of the fast paced financial transactions carried out in a casino, there is a difficulty in tracking down the casino’s financial flow. The conversion of money into chips also makes financial tracking further more complicated because casino players sometimes keep some of the chips as a souvenir. In addition to this, the complimentary programs used by casinos can involve a process which can harbor fraud and it is on this area that most casino management has difficulty controlling especially when fraud is committed by insiders.
Managers can usually exercise discretion among the casino players who can avail of the complimentary bonuses offered by the casino based from the reviewed ratings of the players. However, there is an abuse of this power to grant casino bonuses by some casino employees. This abuse can possibly be done by a manager who deliberately can change the ratings of a casino player who are close to them through transferring points from a dormant account to a friend’s account.
This activity requires internal control to the casino finances hence the employment of services by independent auditing firms to monitor, control and assess all financial transactions taking place in a casino establishment. The conduct of internal auditing by an independent party of auditing firms ensures an impartial and unbiased scrutiny of the casino’s financial statements, assets, income revenues and expenses.
Auditing firms can successfully and efficiently correct the casino’s financial shortcomings and lapses. It can also eradicate fraud from taking place especially from the abuse on the grant of bonuses. Auditors can provide suggestions on how to strengthen the balance between the casino’s expenses and income. Fraud-ridden areas in a casino operation such as its promotional programs can cost casinos thousands of losses. With an effective auditing process however, it can deter the occurrence of fraud in a casino. It can control the issuance of casino complimentary thus prevent fraud from taking place and save a casino from bankruptcy.
Most casinos resort to hiring auditors as the integrity of their business particularly lies on the proper and efficient financial management of their establishment. While casinos usually have an internal auditing department, they still prefer to hire independent auditors to ensure there is no connivance among the casino’s employees. This puts balance on the financial operating systems used by casinos of ensuring proper management of their finances.