Management
Sands Hotel and Casino is observed to be implementing both preventive and detective controls in its day to day operation. Preventive controls are its proactive measures that ensure compliance of various operations to set objectives and standard operating procedures of the company and that of the regulating institution. On the other hand, detective controls are aimed to spot any errors or deviation from standard (University of Vanderbilt, 2014). Below are its identified critical control activities and corresponding control type:
Potential Areas for Additional Control
In the article of the American University in Cairo (2011), it mentioned about corrective controls, which hinge on errors or deviations from standards discovered out of detective controls. If left unaddressed, these mistakes or errors can cause further operational problems. Corrective controls emphasize on addressing the causes of these incidences to prevent recurrence in the future (The American University in Cairo, 2011). In the case of Sands Casino, these may be actions to be taken by management if deviation from standard policies and procedures occur, such as occurrences of inaccurate cash count, delayed arrival of chips on table, back-up plan if computerize system fails or when drop and hold results have been consistent. This would help further strengthen the casino`s internal control system.
Reference
Office of Internal Audit & Institutional Risk Management: Vanderbilt University (2014).Are
there Different Types of Internal Controls? Retrieved from https://www4.vanderbilt.edu/internalaudit/internal-control-guide/different-types.php
The American University in Cairo (2011). Internal Controls. Retrieved from
http://www.aucegypt.edu/offices/audit/Pages/InternalControls.aspx
