05262821 Level II Training Book

Control Risk - Assessment & Testing

• Determine major transaction cycles (for example: gaming revenues).

• Walkthroughs of transactions – inception to recording to reconciliation.

• Compliance with documented control systems.

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Control Risk - Continued • Inquiry alone is not sufficient to test controls.

• Determine if control system design satisfies general segregation of duties (Authorization, Recording, Custody).

• Perform tests of transactions.

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BlueBird CPAs

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