SLOT PERFORMANCE AUDIT
PROPERTY:
AUDIT DATE(S):
AUDITOR(S):
W/P #
PROCEDURE
AUDIT PROCEDURES
1. Review previous audit files and reports (if any) for this area
become familiar with previous errors of concern.
2. As the audit is progressing, review material exceptions or
discuss with management areas that internal audit is
uncovering during the audit.
3. Conduct an informal pre-exit conference once all Audit Steps
have been completed to ensure that management knows what
to expect in the upcoming DRAFT audit report. Assure
management that the files and suggested audit report still
need to be reviewed by the corporate director of internal audit
and that some of the findings may NOT make their way to the
final DRAFT report.
4. Finalize all files and draft audit report (SAFs and/or DAFs) for
review by the corporate director of internal audit and send to
him accordingly via overnight mail.
PRINCIPAL OBJECTIVES OF AUDIT
1. Determine compliance with company policy and
procedures.
2. Determine the effectiveness of the policy and procedures.
3. Review and appraise the operations performed by the
department.
4. Determine the accuracy of reports generated by
personnel in the department.
5. Evaluate the adequacy of internal controls.
6. Determine compliance with any applicable state or federal
regulations that pertain to this function under review.
7. Search for value-added recommendations and
suggestions to improve the efficiency and contribution of
the function under review to the property and Company
as a whole.
In adherence with the audit objectives, the following program should
be observed, but not limited to the following:
1. Review and appraise policies, records, reports and
procedures in terms of their adequacy and effectiveness.
2. Ascertain that there is a clear definition of responsibilities.
3. Ascertain that practices are in accordance with prescribed
routines.
4. Independently review the operations for areas for
improvement (i.e., value-added recommendations and
suggestions).
5. Recommend such changes as appear advisable.
VALUE-ADDED PORTION OF THIS AUDIT
It is imperative while conducting this audit that you search for
legitimate, value-added recommendations and suggestions to make to
management. During this audit, make every effort to ask employees
where they feel cost-reduction or cost-containment opportunities exist.
Also, ask them how they feel that the recommendation should be
implemented. Furthermore, as you complete each step of this audit
program, keep the following caveats in mind:
How exactly does the Slot Performance Department perform their
daily duties?
o This department should perform work in order to keep the
machines functioning properly and maintain compliance with
state and federal regulations.
o Does this department under review seem to have the
preferable policy that, yes, providing high quality service to our
customers is important, however, keeping our price down at
the same time is the ultimate customer service (keep in mind
the gold plating concern — where the value of the service
provided to the customer is exceeded by the cost of providing
INITIALS
DATE
SLOT PERFORMANCE AUDIT
PROPERTY:
AUDIT DATE(S):
AUDITOR(S):
o
that service), as well as keeping our machines functioning
properly?
Doing the same work twice doesn't necessarily get it done any
better. Watch for redoing the same job repeatedly on the
same machines, which could mean that the machines are only
receiving a temporary fix (which could be a training issue) or
spending TOO MUCH on activities designed to repair the
machines trying to ensure that they receive overtime.
Why has the Slots Department organized things the way they
have?
o One caveat to keep in mind is where there are too many
managers, supervisor, or leads (too many levels of authority
within the department) there is a high probability that there is
too much unnecessary work being performed.
o Keep in mind that the organization charts can serve as a guide
to cost-reduction opportunities; however, the review of the
organizational chart can’t and shouldn’t be treated as
conclusive evidence of inefficiency.
o Also, keep in mind that when changing the number of people
in the organization, everyone must keep the organization’s
basic goals and strategies in mind.
SP-ICQ
INTERNAL CONTROL QUESTIONNAIRE
Complete the attached internal control questionnaire at the beginning
of the fieldwork in addition to the conducting of the initial interviews.
INI – INTV
INITIAL INTERVIEWS
Before completing any working papers, interview the following
individuals to fully understand their expectations of the Slots Technical
function, and any concerns they may have regarding the department
at that property. Document the results of your interviews in summary
fashion and mount in the audit file.
o General Manager
o Director of Operations
o Director of Slot Operations
o Slots Technical/Performance Manager
SP – 1
SLOTS DEPARTMENT POLICES AND PROCEDURES
A. Obtain a copy of all Slots Technical Department policies and
procedures/training manuals. There is no need to mount a copy of
these policies and procedures. Instead, review and familiarize
yourself with them so that you can note any deviations.
B. Read through the policies and procedures and conduct at least
seven interviews with selected Slots Technical Department
personnel (to include line employees, mid-level, and top
management within this department) and also perform your own
observations to ascertain the following (NOTE: These interviews
and observations should account for at least 10 hours of your time
when conducting this audit. This 10 hours should not include the
time needed to prepared your work product as defined below):
 Determine that all policies, procedures, and training
manuals are available to the individuals interviewed.
 Determine that a policy exists addressing the protection
and discretion of the hold percent of the machines.
 Determine that all policies are updated.
 Determine that those interviewed understand the policies
and procedures for the department provided to you.
 Determine if the employee understands the
communication mechanism in place should they have to
report on the need for new, updated polices and
procedures within the department.
 If organizational charts and manuals are not in use,
determine how policy, authority, and responsibility have
the opportunity to be communicated, understood, and
followed by those interviewed.
SLOT PERFORMANCE AUDIT
PROPERTY:
AUDIT DATE(S):
AUDITOR(S):
Work Product: Prepare a written summary and conclusion of the
results of your interviews based on the six questions asked above
broken down by category (i.e. ―Policy and Procedure Availability,‖
―Policies Up To Date,‖ ―Level of Understanding of Policies and
Procedures,‖ etc. Your summary will stipulate (in general yet
concise sentences) not only how the property is in ―compliance‖
with the six steps above, but also your ―Conclusion‖ along with any
necessary recommendations.
SP – 2
PERFORM A WALK THROUGH OF THE CASINO FLOOR
Perform a count and document machines locations that are down, bill
validators that are out, and broken machine glass. Inquire with Slot
Technical employees to determine if there is a log for such, (down
games, bill validators down and broken glass). Prepare a written
summary and conclusion of the results. If there are no such logs you
may want to suggest that any such report be implemented to add
value for revenue maximization.
SP – 3
OBSERVE THE SLOT TECHNICAL EMPLOYEE PERFORM THEIR
JOB DUTIES
Perform an observation and walk through of procedure for Slot
performance (i.e. timely response to calls, radio etiquette,
knowledgeable of job Function). Prepare a written summary and
conclusion of the results.
SP – 4
SLOT TECHNICAL TRAINING
Obtain the most recent manufacture training and the most recent
departmental training. Review training logs determine if training
content is adequate and properly documented. Also determine if new
employees are adequately trained on all machine types prior to being
released to work alone.
SP – 5
REVIEW KEY CONTROL PROCEDURES
Determine if there are adequate controls surrounding Machine Door
Keys, CPU Keys, and EPROM Cabinet keys, C-COM Keys. Perform
an inventory of physical keys. Arrange to be present during the shift
change. Review the key sign out logs for completeness for four none
consecutive days for a one month period.
SP – 6
REVIEW INVENTORY AND ORDERING PROCESS
Perform a review of Slot Technical parts inventory determine if
adequate amounts of parts are kept on hand. Review the parts sign
out log, (if any) and review the replacement/ ordering process.
Determine if procedures are in place to assist in tracking parts.
SP – 7
REVIEW MACHINE MOVE DOCUMENTATION
Obtain documentation of the three most recent Machine moves (i.e.
location moves, removal from the Casino floor and machines moved
to the casino floor). Review of documentation to determine if the
machine was moved to the proper location. Discuss with Slot
Management (decision makers) to determine the reasoning or what
methodology is used for machine moves, i.e., how does management
expect the moves to improve revenue? Does the methodology make
sense?
SP – 8
EXAMINATION OF SLOT MACHINE MEAL BOOKS
Slot Meal book Test – Select six Slot Technical employees (two per
shift) obtain the selected employees machine entrance card number
trace to the System generated report to review machine entrances for
three days. Perform a physical examination of the MEAL book/card to
determine if the Slot Technical employees are properly signing the
meal book/card when opening the slot machine door as required by
the state gaming regulations.
SLOT PERFORMANCE AUDIT
PROPERTY:
AUDIT DATE(S):
AUDITOR(S):
SP – 9
REVIEW OF OVERTIME IN THE SLOT TECHNICAL DEPARTMENT
Obtain the Technical departments Kronus reports for one-month
review all over time for proper approval. If there is excessive overtime
hours inquire with management for reasonable explanations.
SP – 10
3. SLOT TECHNICAL DEPARTMENT REPORTS
Obtain a copy of all automated and manually prepared reports
produced and received by the Slots Department (e.g., Zero Bill,
Validator Usage, Machines with no Communication, and/or Meter
Reset reports). There is no need to mount a copy of these sample
reports, rather, gain an understanding of how the reports are used and
understand any annotations made on the reports. Review the final
disposition and filing of the reports.
Review the reports and interview all appropriate personnel to ascertain
answers to the following:
 Analyze the reports to determine their purpose and
usefulness.
 Determine what the recipient does with the report.
 Observe that prompt and accurate filing of reports is in
effect.
 Note whether proper facilities and equipment are provided
for filing all records.
 Ascertain that storage and destruction polices are
followed.
Work Product: Prepare a written summary and Conclusion of the
results of your testing based on the 5 questions asked above broken
down by category (i.e., ―Reports – Purpose and Usefulness,‖
―Improving on Reports,‖ ―Recipient Usage of Reports,‖ ―Reduction of
Recipients?‖ etc. Your summary will stipulate (in general yet concise
sentences) not only how the property is in ―compliance‖ with the eight
steps above but also your ―Conclusion‖ along with any necessary
recommendations.
SP – 11
REVIEW OF PREVENTATIVE MAINTENANCE
Obtain the preventative maintenance documentation, log or schedule
for two weeks. Randomly select 25 machines to determine if
preventative maintenance was performed within a reasonable time
frame or per department standards or even industry best practices
standards (perform a physical observation of the machine and review
the meal book.)
SP – 12
REVIEW OF MACHINE PERFORMANCE
Determine if the financial performance, of the slot machines is
monitored on a regular basis to determine if optimum machine
placement to maximize revenue opportunities. Also, to identify
machine malfunctions. Prepare a written summary describing the
procedures and conclusion of the results.