When management fails to implement audit recommendations

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Last year, the Independent Casino Commission (in New South Wales, Australia) appointed Adam Bell, SC (an attorney) to lead an independent inquiry into The Star Pty Ltd. (Star Entertainment Group).

The stated objective was to “assess The Star’s suitability to hold a casino licence and to examine compliance with its legal obligations. In September 2021”.

This month, the results of the review (the “Bell report”) were released by the Commission. This is part of what ABC News reported:

The Star Entertainment Group has been found unsuitable to operate its casino in Sydney after a damning inquiry into the company.

The inquiry, led by Adam Bell SC, was held earlier this year and heard allegations of money laundering, organised crime links and fraud at its casino in Pyrmont.

Philip Crawford, the NSW Independent Casino Commission chief, said the report made for “sad reading” and detailed Star’s “scant regard” for harm minimisation.

“The institutional arrogance of this company has been breathtaking,” he said.

“And their willingness to take risks in pursuit of financial goals has been appalling.

“Our major concern with regard to the Star remains its culture. There doesn’t seem to be any short-term fix.”

Mr Crawford said Star had allowed money laundering and organised crime to infiltrate…

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