Inherent Risk • Common examples:
o Complex Accounting Cycles (Gaming Revenue) o State Fees, Management Fees, Interfund Accounts o Related Party Transactions (Management Company) o Complex Regulations or Accounting Standards o Prior unresponsiveness to identified control weaknesses • Importance of follow-up of risk monitoring and assessment • Prioritizing corrective action based on significance / likelihood of occurrence
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Fraud Risk Assessment TWO TYPES OF FRAUD RISK: o RISK OF FRAUDULENT FINANCIAL REPORTING (Cooking the Books) o RISK OF MISAPPROPRIATION OF ASSETS (Stealing Company Assets)
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BlueBird CPAs
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