ACC 406 Exam 1

Who is the casino manager?

Ultimate authority over the entire casino during his shift

How often does accounting test the currency counter?

Unannounced quarterly

Observations of drop and count must be?

Unannounced to all employees

At what amount does a payout become taxable?

$1200

What is the Gross Revenue calculation?

+ Closing Bankroll + Credit Slips (cash, chips, or tokens) + Drop - Opening Bankroll - Fill Slips = Gross Revenue (Loss)

What percentage requires investigation on a statistical analysis?

+/- 5%

What is the purposes of the Gaming Commission?

- Acting on recommendations of the Board in licensing matters - Ruling upon work permit case appeals - Has the final authority on licensing matters - Ability to approve, restrict, limit, condition, deny, revoke, or suspend any gaming license - Adopting regulations to implement and enforce the state laws governing gaming

What is the purpose of the gaming control board?

- Eliminate the undesirable elements in Nevada gaming - Provide regulations for licensing - Provide regulations for the operation of gaming - Establish rules and regulations for all tax reports submitted by the gaming licensees - Protect the stability of the gaming industry through investigations, licensing, and enforcement of laws and regulations - To ensure the collection of gaming taxes and fees - To maintain public confidence in gaming

Regulation 6.090 requires?

- Establishes minimum standards for internal control procedures - Requires licensee to submit a written system of internal controls - The submitted system of internal controls is compared to the MICS - Detailed, narrative description of the licensee's procedures in effect that demonstrate compliance with the MICS - Written system of internal controls

What standards must be met so that Internal Audit can substitute CPA work on the CPA MICS Compliance Checklist?

- The IA department reports directly to audit committee or senior management/ownership - Supervisor or manager has a CIA or CPA with 2 years of auditing experience - 50% of audit staff must possess a 4 year degree or advanced degree - Performs observations, inquiries, and documents the work performed

What are the requirements of a progressive payoff schedule?

- The amount should be displayed at or near the games or machines. - Base amount is to be recorded when first exposed and subsequent to each payoff. - At least once per day each licensee shall log the amount of the progressive payoff amount unless it can be paid directly from the slot machine's hopper. - Explanations for decreases shall be maintained - Provide a record of change if rate of progression is changed - May limit payoff to an amount if conspicuous notice is posted

How many medical emergency technicians must a club have?

1

How often does internal audit testings steps for table games?

1 test date during the fiscal six-month period

Who is identified on the employee report?

1. Must identify who is a qualifying employee. 2. Any person who supervises a qualifying employee 3. Any person who enters into a 8.130 arrangement 4. Any person who fulfills the function of race and sports book manger or who determines betting odds, point spreads or betting lines. 5. Any person whose compensation exceeds an amount or the 5 highest paid. 6. Any person who can grant credit or write offs or discounts. 7. Any person who has the authority to determine who can be authorize to grant comps.

What is a dedicated camera?

A camera that continuously records a specific event.

What percentage does the CPA have to retest to see if internal audit cross referenced correctly?

10%

How often are employee reports submitted?

2 times per year

What is a PTZ camera?

A camera that has pan, tilt, and zoom capabilities

How often should pit markers be transferred to the cage?

24 hours

Cage/Vault inventory must be counted by at least how many people?

2TW

How far apart do multiple test dates have to be?

30 days

How long is a questionable time for a void and must have documentation?

30 minutes

How many CPA MICS Checklists?

5 All Procedures Limited Procedures Soft Drop and Count Observation Marker Credit Play Key Controls

How long are documents retained?

5 years

Records must be retained for?

5 years

What is the time limit for giving documentation of any write-offs or discounts to accounting?

72 hours

Who receives mail payments?

A department independent of credit instrument custody and collection usually accounting.

Credit instrument payments received via mail are required to be received by

A department independent of the credit instrument custody and collection.

What is the requirement for club venues?

A designated employee to monitor club venues.

What is a fill slip?

A form used to record the amount of money or chips furnished to a table game from the cashier's cage.

What is a credit slip?

A form used to record the amount of money or chips removed from a table game or the transfer of IOUs, markers, or other credit instrument from a table game to the cashier's cage.

What is a drop box?

A locked container permanently marked to indicate game, table number, and shift. The container must be locked to the table, separately keyed from the container itself.

What is a wagering account?

A patron places funds on deposit for the purpose of using the funds for wagering activity in gaming area other than slots through electronic wagering account transfers.

Who is the dealer?

A person responsible for his table and for accuracy of any paperwork that he drops in his drop box during a shift.

Who is the pit clerk?

A person who obtains requests table fills and credits from pit boss, inputs the information into the computer. Inputs marker information. May input player rating information.

What is considered a qualifying employee with regulation 3.100?

A person whose responsibility it is to directly oversee the department or functions of the operations of pretty much any department and employees who monitor club venues.

What is the financial criteria for a gaming salon?

A salon patron shall include a front money deposit of at least $300,000 or a $300,000 line of credit or a combination thereof.

What is the difference between table games and card games?

A table game is a bet against the casino or the dealer. Card game you play against other players.

Which colors of the fill and credit slips are dropped in the drop box?

A white fill slip and a yellow and possibly the pink credit slip.

What is the difference between active and inactive customers?

Active is still collecting and inactive is no longer trying to collect but not written off.

What does the ICS check?

Actual procedures

What are the division of the Gaming Control Board?

Administration Audit Enforcement Investigations Tax and license Technology

When do you enter and leave the count room?

After the count is in process and cannot leave until funds are accepted.

Detailed explanations must be provided for question on each checklist for responses and for exceptions noted during document testing for what type of responses?

All "no" and "N/A" responses.

What areas do the IACC cover?

All gaming revenue areas, areas subject to entertainment tax, interactive gaming, and miscellaneous regulations.

Regulation 6.090(15) requires an Internal Auditor to determine compliance with

All of the above

All of the following employees must be listed on the employee report except: - 5 highest paid employees - A qualifying employee such as the VP of internal audit - All of these employees must be listed on the employee report - A person who has the authority to determine who can be authorized to grant comps

All of these employees must be listed on the employee report

What is the process of a credit slip?

All parts go out to the pit with the chips. The white part goes back to the cage. The yellow and pink go into the dealer's drop box. Pink is extra so it go in either the drop box or the cage. Accounting grabs all the parts.

What is the base amount of a in house progressive payoff schedule?

Amount of a progressive payoff schedule initially offered before it increases.

Who is the runner?

An individual independent of the cage and the pit. Its usually security.

Who removes the drop boxes?

An individual independent of the pit shift being dropped. Usually security.

What is a shift?

An interval of 8 hours, 24 hours or other division of a 24 hour day.

How often do licensees have to report the time when drop boxes will be removed and the contents counted?

Annually

What is a key employee?

Any executive, employee, or agent of a gaming licensee having power to exercise a significant influence over decisions concerning any part of the operation of a gaming license or who is listed or should be listed on the employee report is a key employee.

What club employees are required to register in the same manner as gaming employees?

Any individual who provides hosting or VIP services. Bartenders and bar backs. Restroom attendants Security and surveillance personnel Servers, server assistants, and bussers Supervisors and managers who supervise any individuals required to register pursuant to this section.

What is an independent agent?

Any person who approves or grants the extension of gaming credit on behalf of the casinos or collects a debt.

What is the required surveillance on a slot machine?

Any slot machine that has a payout of more than $250,000 must be monitored by dedicated cameras to provide coverage of all patrons and employees at the slot machine and the face of the slot machine that shows the payout lines.

How often are manual and computerized fill and credit slips reconciled?

At least one day per month

A progressive payoff schedule is recorded:

At least one time daily.

Who do you report audit work to?

Audit committee and to senior management/ownership personnel independent of department under review.

Who is the table games shift manager?

Authority over all table games for one shift

A PTZ camera must be?

Behind a smoked dome, one-way mirror or similar materials that conceal the camera from view.

How many people need to approve a write off and discounts?

By at least two management officials one of which is independent of the initial credit limit approval process and issuance and collection of credit.

What is the required surveillance for card games?

Camera must posses the capability to monitor and record each card game area, with sufficient coverage to view patrons, dealers, and activities on the card table surfaces.

What is the minimum wager for a slot machine in a gaming salon?

Can't be less than $500

What happens to the drop at the end of shift?

Chips, token, coins, markers, and rim credit inventory is counted and recorded on a table inventory form. Verified by two pit supervisor or one pit supervisor and one supervisor from another gaming department.

A casino is required to make a reasonable effort to collect outstanding casino account receivables. This includes:

Collection requests in letters sent to the patron's last known address or email.

What are the designated purposes for testing procedures?

Compliance with Regulation or MICS Clerical accuracy of Revenue Whether assets were protected

Must perform a test on which counting machines?

Count room currency counter Currency Counter Interface

The licensee must do what in an instance of noncompliance?

Develop responses that implements corrective measures and transmits the responses to the Board.

What is the incremental amount of a in house progressive payoff schedule?

Difference between the amount of the progressive payoff schedule and its base amount.

A patron who self-limits themselves is limiting their access to

Direct mail marketing

What is the preferred method for verifying a patron's identity?

Driver's license

What is statistical drop?

Drop plus marker credit slips plus pit credit repaid with chips. Drop + Marker Credit Slips (MCS) + Pit Repaid with Chips (CR) = Statistical Drop

What is the licensee's role in club venues?

Each licensee shall have written polices and procedures for club venues that seek to foster the public health, safety, morals, good order and general welfare of the patrons.

What are the surveillance requirements for a table game with a progressive jackpot meter?

Each table game with a potential progressive jackpot of $25,000 or more must be recorded and monitored by dedicated cameras that provide coverage of the table surface so that card values and card suits can be seen and you can identify patrons and dealers. Plus a view of the progressive meter jackpot meter.

According to Regulation 5.300, all of the following employees must register with the board in the same manner as gaming employees and shall be considered gaming employees EXCEPT - Restroom Attendants - Bussers - Emergency medical technicians - Security Personnel

Emergency medical technicians

What is a gaming salon?

Enclosed gaming facility that is located anywhere on the property of a resort hotel that holds a non restricted gaming license, admission to which is based upon the financial criteria of the salon patron is established by the licensee and approved by the board.

How many days should collection efforts be made?

Every 90 days

How often should employees change their password?

Every 90 days

Which of the following is performed by the casino's accounting and audit employees (not internal audit) on a daily basis? - Key inventory count - Foot the issue and payment slips and trace the totals to the amounts on the MGR - Reconcile original manual fill slips to the restricted copy and verify the amount is the same on both parts. - Examine a sample of fill and credit slips for propriety of signatures and proper completion.

Examine a sample of fill and credit slips for propriety of signatures and proper completion.

What do you do with voided markers and voided fill and credit slips?

Examine all voids. Trace void to computer. Then trace the computer void to the physical form.

Who does the CPA MICS Compliance Checklist - Internal Audit?

External audit - CPA firm and GCB Board

Drop Boxes are removed from the table by the dealer.

False

If Internal Audit is used to substitute for CPA work there are no items the CPA is required to be perform.

False

Partial payments of a cage marker require the cage to replace the original instrument with a marker for the remaining account.

False

Table game progressive meter jackpot amounts must be recorded and monitored by a dedicated camera for each meter, even if several tables are linked to the same progressive jackpot meter.

False

The MICS checklist can be given to a casino employee for employee completion?

False

When discipline against a gaming licensee is appropriate the Board acts in the judicial capacity and the Commission acts in the prosecutorial capacity.

False Board - prosecutorial Commission - judicial

The Gaming Control Board has 5 members?

False it has 3 members

How is the Daily Table Games Recap Report prepared?

For the day For the month to date By game

What are the two types of customer deposits?

Front money and safekeeping

What is a progressive payoff schedule?

Game or machine payoff schedule, including those associated with contests, tournaments, or promotions that increase automatically over time or as the game or machine is played.

How many cameras are required for linked progressive jackpot meters?

If several tables are linked to the same progressive jackpot meter, only one meter must be recorded.

When do independent hosts not have to register in the same manner as a gaming employee?

If they register pursuant to section 5.345

What is the required surveillance for table games?

If you have 3 or more table games must possess the capability to monitor and record each table game area, identify patrons and dealers, and table game surface, view of the table bank, determine the configuration of wagers, card values, and game outcome.

Surveillance personnel must do all of the following except: - Be knowledgeable of the games and house rules ... - Provide access to any agent of the board immediately upon request and presentation of proper identification. - Immediately contact the enforcement division in the event of a dedicated camera malfunction. - Be trained in the use of the surveillance equipment

Immediately contact the enforcement division in the event of a dedicated camera malfunction.

What is a wiz box?

In a manual fill and credit system it is the locked box where the fill and credit slips are deposited

What checklist does the IACC used with?

In conjunction with the CPA MICS Compliance Checklists

If you examine a document you must?

Include documentation by either identifying form or make a copy of the document.

Why would a progressive payoff schedule decrease?

Someone hit the jackpot There is a malfunction

When can a licensee settle a debt?

Induce the patron to make a partial payment. To compromise a genuine dispute between the existence or the amount of the debt. Retain the patron's business. Induce timely payment.

This checklist that includes statutes, regulations, and the Internal Audit testing steps is called what?

Internal Audit Compliance Checklist

How often do we audit key controls?

Internal audit twice a year Accounting and casino quarterly

What do you do if you find a procedure that was wrong?

Investigate and make sure issue has been resolved and results are documented. Usually 6 months.

Which part of a pit marker form is always inserted into the drop box?

Issue Slip

What details should be included in the written procedures?

Job titles Procedures performed How and where the procedure is performed

What is tested during drop and count?

Key controls and currency counter must be tested.

What are drop box content keys?

Keys used to gain access to the contents of table games drop box.

What are count room keys?

Keys used to gain entrance to the room designated for the counting of the contents of table games drop boxes.

What are drop box storage rack keys?

Keys used to open storage area where table drop boxes are kept after removal from tables and prior to the count of their contents.

What are drop box release keys?

Keys used to remove the drop boxes from table and card game tables.

What are accepted attempts of collection?

Letters, email, personal or telephone conservations, presenting the instrument to the bank.

What documentation is allowed?

Log, checklist, notation on reports, and tapes attached to documents

The casino's accounting and audit employees (not internal audit) are required to document and maintain evidence the performance of the table game audit procedures. This can include

Logs and checklists and tapes attached to documents

What does the CPA MICS Checklist audit?

MICS

What is Marker Credit Slips?

Markers Issued - Markers Paid

What is the MGR and what is included on it?

Master game summary Drop box contents Fill and credits and inventory forms Currency drop amount Win/loss

Who can be in the count room during a soft count?

Members of the drop and count teams, authorized observers, supervisor for resolution of problems, authorized maintenance personnel, and personnel performing currency transfers.

What is the required surveillance for fills and credits?

Must be monitored by a dedicated camera or motion-activated dedicated camera that provides coverage of the chip values and fill and credit slips if its manual.

What is the required surveillance for the casino cage and vault?

Must possess the capability to monitor and record a general overview of activities of employees and patrons.

What is the required surveillance for the count room?

Must possess the capability to monitor and record all areas where money may be stored or counted in the soft count and hard count rooms. Coverage of scales. Table games drop box storage rack or area must be monitored by either a dedicate camera or a motion-detector activated camera. The counting surface area must be continuously monitored by a dedicated camera.

What is the required surveillance of security offices?

Must possess the capability to monitor and record audio and video in rooms where any persons may be detained. Must inform people they are under surveillance.

What is the required surveillance for race books, sports, and pari-mutuel books?

Must possess the capability to monitor and record general activities in each race book, sports pool, and pari-mutuel ticket writer and cashier area to identify employees.

What is the required surveillance for keno and bingo?

Must possess the capability to monitor the keno and bingo drawing device or random number generator by a dedicated camera or an automatically activated camera to identify the balls drawn or numbers selected. Must possess the capability to monitor and record general activities in each keno game area and the game board in order to identify the employees.

Can a cage marker be voided by a cage personnel?

No

Can a pit marker be voided by a pit personnel?

No

Can employee complete questionnaires be used to replace an in person inquiry?

No

Can you test documents in consecutive months?

No

Is partial payment replaced with a marker for the remaining balance?

No

Can anyone have access to more than one different kind of key?

No except for when the count team needs to access the drop boxes in the storage racks.

What is required of a signature?

No initials. May include the person's first initial but a full last name is required.See

Can you eliminate or reduce a payoff schedule?

No it must be distributed to another single progressive payoff schedule on a similar game

Can security dump patrons of a club into the casino?

No security shall receive training on how to best interact with and assist medical technicians.

Which answers must have an explanation?

No, N/A, and exceptions noted

How long can the surveillance room be unattended?

Not to exceed 1 hour in an 8 hour period to allow for meal and rest breaks.

How do you check that count team members are properly registered?

Obtain the employee's name and social security number and confirm by review of the Human Resources Department's records.

When performing an observation of a required gaming activity (ex. drop and count) the observation should be performed how?

On an unannounced basis to all employees. (officers, directors, or employees)

How often is the CPA MICS Compliance Checklist - Internal Audit completed?

Once a year

How often are required procedures checked?

Once each fiscal year except for slots and table games which is twice a year and branch offices which are once every two or five years.

How often should the licensee log the progressive payout amount?

Once per day

How often should the progressive payoff amount be recorded?

Once per day

How are fill and credit slips filed on a computerized systems?

One part is stored on the computer and cage or pit cannot access or make changes

What are other forms of identities that can be use to verify a patrons identity?

Passport Non resident alien identification card Other government issued iID

The preferred method for verifying a patron's identity is

Patron's Driver's License

An original cage marker must have

Patron's name and signature

What needs to be documented and maintained when establishing credit?

Patrons name, current address and, signature Type of ID credential, credential number, expiration date of credential, and date credential was examined.

What procedures must be done with the CPA MICS Compliance Checklist?

Perform inquiries, observations, and document compliance testing. Unannounced observation of slot and table drop and count.

What procedures does Regulation 6.090(15) require for internal auditors to check compliance?

Perform observations, document examinations, inquiry with employees.

Who is the pit shift supervisor or pit boss?

Person who has authority over one pit or a certain designated number of tables. This level authorizes fill and credits.

What is a branch office?

Physical offices that can take possession of currency from a patron for account deposits and/or payments on credit instruments.

What are casinos required to do for problem gambling?

Post in a conspicuous places in or near gaming and cage areas and cash dispensing machines that has written material and the toll free number of the National Council on Problem Gambling. Implement procedures and training for employees that interact with gambling patrons.

How often does a list of employees get sent to the board of employees who are authorized to be in the count room?

Quarterly

What do you reference a written system of internal controls?

Reference to the applicable MICS number with a table that cross references each MICS to the page number where each MICS is addressed

What is the win/drop percentage?

Relationship between chip buy in (cash or marker) and cash wagers dropped to what the casino wins back from the patron through table play.

If you change location from surveillance you must?

Review and document your transit period.

What is the CPA required to perform?

Review of internal controls One unannounced observation of slot and table drop and count (including key controls) Completion of the CPA MICS Compliance Checklist - Internal Audit

Manual forms of fill and credit slips must be?

Safeguarded with adequate procedures for distribution, use and control Cage or pit personnel cannot have access to the locked box copies

What should you do before you issue credit?

See if credit limit has been established, what is the available amount of credit, and verify patron identity and identification credential.

What is the minimum wager for a table game in a gaming salon?

Set at the discretion of the licensee

What do you do when the drop box is emptied?

Show it to another member or to surveillance to verify that its empty.

What slot machines have an exception on surveillance?

Slot machines that offer a payout less than $3,000,000 that are monitored by a linked online progressive computer system which has been approved by the board chairman.

Difference between soft count and hard count?

Soft count is bills and hard count is coin.

What re the CPA MICS Compliance reporting requirements?

Standardized agreed-upon procedures, sample sizes, document standards and report format required by 6.090(9).

What does the Internal Audit Compliance Checklist audit?

Statutes and Regulations

What is a statistical win?

Table games gross revenue plus marker credit slips. Gross Revenue + Marker Credit Slip = Statistical Win

Documentation required before a casino extends credit include:

That the patron's address is recorded.

Slot machines requiring dedicated camera coverage should provide coverage of all the following except: - The bill-in and wagering instruments slots - All employees at the slot machine - The face of the slot machine - All patrons at the slot machine

The bill-in and wagering instruments slots

Who assigns and controls user access to keys?

The cage or a computerized system like key watcher

Who drops the marker documentation into the drop box?

The dealer only

What are the requirements of a surveillance room?

The entrance must be located so that it is readily accessible by either casino employees who work primarily on the casino floor or the general public. Access is limited to surveillance personnel, key employees and other authorized personnel.

A patron who self-limits is limiting their access to?

The issuance of credit Check cashing Direct mail marketing

The count of the table games funds begins with

The opening of the first table game drop box.

How many signatures are on each fill slip?

The pink has the signatures of the cashier and the runner. The white and yellow have the signatures of the cashier, runner, dealer, and pit boss.

What is a drop?

The total amount of money, chips, and tokens contained in the table drop boxes.

What is the process of a fill slip?

The white and yellow copy goes out to the pit with the chips and the pink stays in the cage. The white copy goes in the drop box. The yellow copy goes back to the cage. Everything goes to accounting.

How many signatures are on each credit slip?

The yellow and pink have 3 signatures. The white has 4 signatures.

How many people are required to be present during the access of the stored full table game drop boxes?

Three

How many people are required to be present with the count keys?

Three

What happens if a drop box needs to be emptied at a non scheduled time?

Three people involved including management A report is maintained Two employees stay with the keys

How many people are present during the process of the drop box removals?

Three. Security who is removing the box, the runner who is running the boxes to the storage racks, and someone who is observing the process.

How many people are required to perform a soft count?

Three. The same three people can't have the same shifts.

Which of the following is NOT a purpose of the Gaming Control Board?

To approve, restrict, limit, condition, deny, revoke, or suspend any gaming license.

Why do we want internal controls?

To check that assets are safeguarded, financial records are accurate and reliable, transactions are authorized, transactions properly recorded, access to assets authorized, competent and qualified personnel.

Why did the GCB set up an Internal Audit Compliance Reporting Requirement?

To ensure all gaming licencees are performing a minimum amount and similar types of compliance procedures with internal audit programs, checklists, and guidelines.

Which of the following is not one of the three parts of a marker? - Issue Slip - Transfer Slip - Original - Payment Slip

Transfer Slip

What makes up a marker form?

Triplicate form Original Payment Slip Issue Slip

How are the Fill & Credit slips formed?

Triplicate forms White, yellow, pink

A "shift" can be 24 hours.

True

A jackpot would be an acceptable reason a progressive payoff schedule has decreased.

True

Fills and credits in the casino cage or vault area must be monitored by a dedicated camera.

True

Internal Audit may perform the count of all funds in all gaming areas required by the Accounting/Audit Standards that requires the casino's accounting/audit employees to perform.

True

The Gaming Commission has 5 members?

True

How often does accounting/audit count all gaming areas?

Twice

How many people are required to be present during the access of stored empty table game drop boxes?

Two

What must be done before the soft count is performed?

Two count team members verify the accuracy of the currency counter.

How many weeks is required to scan the meter readings?

Two weeks

How many part is the cage marker?

Two. The original marker and the payment slip.

The drop box release key is

Used to remove the drop box from table.

How often do you do the CPA MICS Checklists?

We audit table games twice. The second time you can audit you can do the limited procedures instead of all procedures. Soft drop and count observation, marker credit play, and key controls is done always.

When does the table game drop begin?

When the first table game drop box is removed.

When does the drop begin?

With the removal of the first table game drop box. The setting out of empty table game drop boxes and the drop is a continuous process.

Access to credit documentation is restricted. Which of the following is the most restricted document?

Written-off credit instruments.

Are qualified employees considered key emploees?

Yes

Can internal audit do all three counts for all gaming areas?

Yes

Can you use Internal Audit to complete the CPA MICS Compliance Checklist?

Yes

IS the employee report confidential?

Yes

If a partial payment is made in the pit, is a new marker made?

Yes a new marker is made reflecting the remaining balance.

Can a salon patron have guests?

Yes as many as guests as the licensee permits. The salon patron must be present. Licensee may grant the salon patron to leave but guests must continue to wager and must not exceed 6 hours.

Can employees store funds in the cage?

Yes with proper documentation

Before extending credit, documentation should include

that a credit check was performed.