Regulation .16 Internal Audit Department Standards.
Regulation .16 Internal Audit Department Standards.LinkCopy Citation
A.
At least 60 days before video lottery terminal operations are set to commence, a facility operator shall submit to the Commission for review and approval internal audit department operating standards and procedures that:
(1)
Meet the requirements of Regulation .10E(6)(b) of this chapter;
(2)
Conform to this regulation; and
(3)
Ensure that an internal audit is conducted in accordance with generally accepted auditing standards in the United States.
B.
A facility operator's internal audit department operating procedures and standards shall, at a minimum, require the internal audit department to:
(1)
Work independently of the departments of the facility that are subject to audit;
(2)
Assess whether the facility's internal controls comply with applicable law and Commission directives;
(3)
Test the facility's compliance with its internal controls;
(4)
Immediately report a deficiency in, or noncompliance with, the facility's internal controls to:
(a)
The audit committee;
(b)
The chief executive officer;
(c)
Management; and
(d)
The Commission;
(5)
Recommend resolution for eliminating a deficiency in, or noncompliance with, the facilitys internal control system;
(6)
Meet periodically with the audit committee or director of internal audit;
(7)
Perform audits of:
(a)
Unless an alternate risk assessment and audit plan is submitted in writing and approved in writing by the Commission, all departments of the facility that are designated under §§C and D of this regulation; and
(b)
A department of the facility designated by the Commission;
(8)
Prepare an audit report for each audit conducted;
(9)
Accurately document the audit process and results in an audit report that, at a minimum, shall include:
(a)
Audit objectives;
(b)
Audit procedures and scope;
(c)
Findings and conclusions;
(d)
A recommendation for addressing a deficiency in, or noncompliance with, the facility's internal controls;
(e)
Resolution of all exceptions; and
(f)
Management's response;
(10)
Submit audit reports to the Commission on a schedule specified by the Commission; and
(11)
Verify that:
(a)
A deficiency or noncompliance revealed during an audit has been corrected; and
(b)
An exception disclosed during an audit has been resolved.
C.
The audit department shall audit at least semiannually the functions and operations of the facility's:
(1)
Cashiers' cage;
(2)
Main bank;
(3)
Collection of cash storage boxes;
(4)
Cash count;
(5)
Revenue audit;
(6)
Operations department;
(7)
Key control; and
(8)
Table game operations.
D.
The audit department shall audit at least annually:
(1)
Responsible gaming program;
(2)
Security department;
(3)
Currency transaction reporting;
(4)
Suspicious activity reporting;
(5)
Information technology controls;
(6)
Surveillance department; and
(7)
Player tracking system.
E.
The internal audit department shall conduct an audit on an unannounced basis when possible.