Question: An article in the Wall Street Journal reported that about $7 million in quarters disappeared from the slot machines of four casinos of Argent Corporation

An article in the Wall Street Journal reported that about $7 million in quarters disappeared from the slot machines of four casinos of Argent in an 18-month period. The coins weighed nearly 150 tons, and the odds against such a payout to players of the slot machines is 1 in 3,875,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000—an extremely unlikely event, to say the least. The disappearance was part of the biggest known skim operation ever. Skimming is taking a portion of gambling revenues before they can be counted for tax purposes.
Internal control is especially important in casinos. Meters in the slot machines record the winnings paid to customers. Coins are taken immediately to the slot counting room when machines are emptied. In the counting rooms, coins are weighed, and a portion is returned to the change booths.
What items in the chapter checklist of internal control seem especially important concerning slot machine operations? How could the money from slot machine operations have been stolen in such large amounts?

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All of the items on the checklist seem important but separation of duties proper authorization and physical safeguards seem most prominent According to the Wall Street Journal slotmachine meters were ... View full answer

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