Table Controls at Bellagio Casino Resort

2094 Words Jul 14th, 2013 9 Pages
Controls at the Bellagio Casino Resort

Purpose of Case
The Controls at the Bellagio Casino Resort case was designed with several purposes in mind.
First, it illustrates a control system that is dominated by action and personnel controls, rather
than results controls. The analysis of this system leads to insights about some of the factors that
limit the feasibility of results controls.
Second, the case can lead into a discussion of what is meant by the term “tight control.” The
case presents an excellent example of the application of tight action controls in the table games
areas of the casino.
Finally, the case can lead into a discussion of the meaning of what auditors refer to as “internal
control,” which is a subset of the
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Another problem that casinos face is “skimming.” Skimming means that money is taken from
the casino, such as cash from the cage or counting room often requiring cover through forged
documentation and changed audit trails. This problem can be used to lead into a discussion of
internal control and the ways in which cash is controlled in the casino. The two major purposes
of internal controls are (1) to safeguard assets and (2) to ensure reliability of the financial
records. In the area of cash, the casino maintains imprest cash balances to safeguard the cash
and chips; this means assigning individual responsibility for a certain amount of money. And
they have elaborate procedures to ensure that the financial records are reliable (e.g., multiple
approvals of transactions, checking of audit trails, multiple reconciliations, and trend analyses),
some of which are described in great detail in the case.
Do these procedures prevent skimming? The answer is a tentative yes. The controls are effective
against skimming unless collusion is involved, which is a frequent limitation to internal
controls.

Weakness of Results Controls
Assignment Question 2,
. Results controls are simply not feasible for control over the dealers
because results are not measured until the 24-hour drop procedure is complete, and during that
period more than one dealer has worked at a table. It would be possible to measure dealer
productivity by keeping track of deals per hour,…

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