Internal Controls For Hospitality Revenue In The Gaming Industry

Abstract

In todays difficult economic climate, business managers must carefully consider all aspects of business operations to minimize waste and increase efficiency. The revenue cycle continues to be the primary area of fraud and abuse requiring strong, comprehensive internal controls (AICPA 2002). Internal controls in the revenue arena are now more important than ever. The current paper provides a control review checklist for hospitality revenue in the gaming industry. Extant studies have often focused on internal controls for the gambling operations of the gaming industry to the neglect of the hospitality portion of the industry. For many firms in the industry, the hospitality revenue can account for half of total firm revenue. The checklist we provide can be used as a general benchmark to perform preliminary evaluations of a companys internal control system in the hospitality arena. Auditors can compare their clients control objectives with the objectives that are presented. During preliminary investigations of the companys internal control system, auditors should review whether important control objectives have been omitted and whether the omission incurs or heightens risk. The control review checklist can also be used by CFOs or controllers in the gaming industry in reviewing whether their companys internal control systems are adequate. The checklist provides CFOs or controllers internal controls that external, independent auditors consider to be important.

Internal Controls For The Income Producing Real Estate Industry

“…1 The revenue cycle continues to be the primary area of waste, fraud and abuse requiring a comprehensive system of internal controls (AICPA, 2002). Similar to Kizirian et al (2011), this paper focuses on the high risk area of revenues. Internal controls assist management in producing accurate and reliable information, adhering to management's policies and procedures, and safeguarding assets.…”

“…Internal controls assist management in producing accurate and reliable information, adhering to management's policies and procedures, and safeguarding assets. 2 Therefore, internal controls in the revenue cycle are of critical importance. The current paper provides a control review checklist for the revenue cycle of the income producing real estate industry.…”

“…A monthly national index for all properties set at 1.0 for the year 2000 peaked in October 2007 at 1.91118. In March 2011 the index was 1.017119 (Moody's 2011) 2. Companies use internal controls as checks on a variety of processes, including financial reporting, operating efficiency and effectiveness, and compliance with applicable laws and regulations(PCAOB, 2007).…”