05262821 Level II Training Book

Audit Planning Step #1 - Obtain An Understanding • Regulatory Environment - Working Knowledge of Industry, Tribal- State Gaming Compact, Tribal Gaming Ordinance, and applicable Tribal Minimum Internal Control Standards (TMICS).

• Operating Environment – Type and Volume of Transactions, Management Attitude, Computer Information Systems, Data Flow, Documented Control Systems, etc.

• External Environment – Regulators, Lenders, Tribal Membership, Competitive Environment, etc.

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Audit Planning Step #2 – Risk Assessment • What can go wrong? – Who is relying on the numbers? • Which accounts have more risk? • What controls are in place? • Which compliance areas are most important or subject to scrutiny? • Potential for fraud? • Materiality of account? • Assess the level of risk (Low, Medium, High)

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BlueBird CPAs

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