The Division of Audit is primarily responsible for auditing the CNMI’s exclusive casino gaming licensee to determine proper reporting of gaming revenues for purposes of associated taxes due to the CNMI and to monitor ongoing the financial health of the casino gaming licensee through continual review of the licensee’s financials.
In addition to its primarily responsibilities, the Audit Division, in collaboration with the other CCC Divisions, has the following objectives:
PROTECT THE INTEGRITY OF CASINO GAMES
The Audit Division conducts routine performance reviews on table, slots, and electronic table games and compares actual performance to the corresponding theoretical holds to ensure that any variances greater than a specific threshold are investigated to ensure fair game-play to patrons and identify potential fraud. Further, the Audit Division also computes house edges on new casino game offerings to test reasonableness of offerings.
PROTECT AGAINST FRAUD
The Audit Division evaluates the licensee’s standard operating procedures, written policies, and internal controls. The Audit Division also performs tests of compliance with applicable gaming laws, CCC Regulations, and CCC Minimum Internal Control Standards.
PREVENT UNLICENSED PERSONS FROM SHARING IN GAMING PROFITS
The Audit Division performs continuous review of the monthly expenditure schedule as well as financial suitability reviews of casino vendors, casino service providers, and junket operators.
In order to effectively perform its duties and responsibilities, the Audit Division performs and strictly oversees the proper determination and reconciliations of gross gaming revenue and taxes reported, minimum bankroll requirements, financial statement reviews, game performance reviews, controls testing and reviews, surprise observations and counts, risk assessments, and other substantive procedures.