Casino Gambling and Workplace Fraud – Implications for Auditors
Research on Professional Responsibility and Ethics in Accounting
ISBN: 978-1-80455-793-8, eISBN: 978-1-80455-792-1
Publication date: 30 March 2023
Abstract
Casino gambling in the United States has increased significantly in the last 30 years, going from just 2 states (Nevada and New Jersey) in 1988 to 41 states with over 980 casinos. This rapid growth of casino gambling has resulted in additional social costs, including workplace embezzlements committed by problem gamblers. Embezzlements contribute to greater fraud risk for organizations in casino regions and are expected to rise as casinos multiply and increasingly cater to convenience gamblers. The purpose of this chapter is to highlight the proximity of casinos as a fraud risk factor for embezzlement. The authors recommend that internal and external auditors for companies located in casino areas assess this fraud risk and where appropriate, perform audit procedures to address this risk. There is also an opportunity for external auditors to assist those companies located in casino regions (that may lack internal auditors) in establishing fraud prevention programs.
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Acknowledgements
Acknowledgments
We would like to thank Pamela Roush, Martin Stuebs, participants at the 25th Annual Ethics Research Symposium, workshop participants at Baylor University, and participants at the 2014 Public Interest Midyear Meeting for their comments and helpful suggestions on previous editions of this paper. We also appreciate the assistance from Tara Shawver (Editor), and comments from two anonymous reviewers.
Citation
Earley, C., Hartley, C. and Kelly, P. (2023), "Casino Gambling and Workplace Fraud – Implications for Auditors", Shawver, T.J. (Ed.) Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 25), Emerald Publishing Limited, Leeds, pp. 149-164. https://doi.org/10.1108/S1574-076520230000025007
Publisher
:Emerald Publishing Limited
Copyright © 2023 Christine Earley, Carol Hartley and Patrick Kelly