Controls at the sands hotel and casino
This case illustrates one approach to control in a high cash-transactions setting where theft is a constant threat. Although the casino industry is in some ways unique. the controls observed in the case may be applicable to other settings. As you read through this case, try to determine which of the controls used at Sands Hotel might be applicable elsewhere, and under what circumstances.
Write answers to the following questions:
1) Analyze the controls at Sands Hotel and Casino using both the COSO and CoBIT Maturity Model frameworks. Organize your answer by examining the control environment and the application controls.
2) Restaurants are also high cash-transaction business. Discuss the controls at Sands Hotel and Casino that would be appropriate at a restaurant.
- General
Strict separation was maintained between operations and recordkeeping, so as to make sure that both of the duties were being performed optimally as the finance organization was large – Segregation of Duties - Control over Operations
o Dealing is a skilled profession, that requires training and experience, which is valuable to identify players who cheat – Employees of Integrity - Relief Dealer’ replaces the dealer at 2 different tables for 20 minutes during the break after a dealer has dealt at a table for 40 minutes, so that the originaldealers can maintain concentration and this method reduces errors and helps them maintain humor during difficult conditions – Employees of Integrityo‘Floorperson’ assigned to monitor tables – o‘Pit Boss’ supervised 8 tables – oExtra level of supervision, ‘Boxperson’ added at crap tables – oMachines inspected regularly for evidence of tampering – Control of Cash (Individual Accountability)oPersonnel who dealt directly with cash (change personnel, coin redemption personnel, cashiers, chip fill bank personnel) were held individually accountable for a specific sum of money that was charged out to them – Employees of IntegrityControl over Transfers of Cash or Chips (Formal Procedures for Transfers)oTransfers of cash or chips to or from nonimprest funds required creation of formal transactions signifying transfer of accountability of the money involved in the form of slips and check (Opener Slip, Fill Slip, Closer Slip and Counter Check) – oUse of a ‘Drop Box’, a locked container into which the drop was placed and thecash deposited immediately – oCredit had to be approved by checking the customer’s credit authorization limit through a computer terminal – oReverse exchanges, chips for cash, was not allowed at the table –oUse of a ‘Casino Cage’, a secure area within the casino where the casino bankroll was kept, to make reverse changes –oAfter printing, a Security Guard transports the chips and ‘Fill Slip’ to the dealer–
