Casino auditing is a rather complicated process that results from collaboration between casino management, namely the internal audit department, independent certified public accountants, and government gaming control agencies.

Internal Auditing

Because of all the assets a casino possesses in addition to the amount of money going in and out in chips, it is imperative that a casino have plenty of checks and balances to make sure all of their funds are where they should be. In addition, the easiest way for a casino to lose its gambling license is for it to be accused of cheating and for the cheating to be proven. In addition, if the public has the slightest suspicion that a casino may be cheating, the casino will lose an irreplaceable amount of business.

The internal audit department of a casino must ensure that all internal procedures are followed and that employees and customers do not cheat. In both Nevada and New Jersey all casinos must file a documented system of internal controls with regulatory agencies.

Certified Public Accountants

Certified public accountants are the most closely involved with the auditing and financial reporting of casinos. Accountants are involved with traditional audits that are conducted on an annual basis, submissions to the Securities Exchange Commission (annual audits, special audits, quarterly reviews), and submissions to Regulatory Agencies (annual internal control evaluations, annual financial audits). Most large casinos and casinos with publicly traded stocks need an annual financial audit, even if those audits were not mandated. Independent auditors also report on a casino’s system of internal control. This is done through a separate, more thorough evaluation. The independent auditors make their evaluations based on the system of internal controls the casinos filed with the regulatory agencies.

Governmental Control

The auditing focus of governmental control agencies is most concerned with the reporting of casino revenues. They also want to ensure that the amount of taxes levied on the total revenue of a casino is properly reported. The governmental control agencies make sure that the state regulatory audit procedures, systems and policies are being followed properly by the internal auditing departments of casinos.