ACC 406 EXAM 1 QUESTIONS & ANSWERS
Access to credit documentation is restricted. Which of the following is the most
restricted document? - Answer -Written-off credit instruments.
This checklist that includes statutes, regulations, and the Internal Audit testing steps is
called what? - Answer -Internal Audit Compliance Checklist
Detailed explanations must be provided for question on each checklist for responses
and for exceptions noted during document testing for what type of responses? - Answer
-All "no" and "N/A" responses.
The MICS checklist can be given to a casino employee for employee completion? -
Answer -False
Regulation 6.090(15) requires an Internal Auditor to determine compliance with -
Answer -All of the above
The Gaming Control Board has 5 members? - Answer -False it has 3 members
If Internal Audit is used to substitute for CPA work there are no items the CPA is
required to be perform. - Answer -False
Which of the following is NOT a purpose of the Gaming Control Board? - Answer -To
approve, restrict, limit, condition, deny, revoke, or suspend any gaming license.
When discipline against a gaming licensee is appropriate the Board acts in the judicial
capacity and the Commission acts in the prosecutorial capacity. - Answer -False
Board - prosecutorial
Commission - judicial
The Gaming Commission has 5 members? - Answer -True
When performing an observation of a required gaming activity (ex. drop and count) the
observation should be performed how? - Answer -On an unannounced basis to all
employees. (officers, directors, or employees)
What is the purpose of the gaming control board? - Answer -- Eliminate the undesirable
elements in Nevada gaming
- Provide regulations for licensing
- Provide regulations for the operation of gaming
- Establish rules and regulations for all tax reports submitted by the gaming licensees
- Protect the stability of the gaming industry through investigations, licensing, and
enforcement of laws and regulations
- To ensure the collection of gaming taxes and fees
,- To maintain public confidence in gaming
What are the division of the Gaming Control Board? - Answer -Administration
Audit
Enforcement
Investigations
Tax and license
Technology
What is the purposes of the Gaming Commission? - Answer -- Acting on
recommendations of the Board in licensing matters
- Ruling upon work permit case appeals
- Has the final authority on licensing matters
- Ability to approve, restrict, limit, condition, deny, revoke, or suspend any gaming
license
- Adopting regulations to implement and enforce the state laws governing gaming
What does the Internal Audit Compliance Checklist audit? - Answer -Statutes and
Regulations
What does the CPA MICS Checklist audit? - Answer -MICS
Why did the GCB set up an Internal Audit Compliance Reporting Requirement? -
Answer -To ensure all gaming licencees are performing a minimum amount and similar
types of compliance procedures with internal audit programs, checklists, and guidelines.
What checklist does the IACC used with? - Answer -In conjunction with the CPA MICS
Compliance Checklists
How far apart do multiple test dates have to be? - Answer -30 days
If you examine a document you must? - Answer -Include documentation by either
identifying form or make a copy of the document.
How long are documents retained? - Answer -5 years
What do you do if you find a procedure that was wrong? - Answer -Investigate and
make sure issue has been resolved and results are documented. Usually 6 months.
Who do you report audit work to? - Answer -Audit committee and to senior
management/ownership personnel independent of department under review.
What re the CPA MICS Compliance reporting requirements? - Answer -Standardized
agreed-upon procedures, sample sizes, document standards and report format required
by 6.090(9).
, Regulation 6.090 requires? - Answer -- Establishes minimum standards for internal
control procedures
- Requires licensee to submit a written system of internal controls
- The submitted system of internal controls is compared to the MICS
- Detailed, narrative description of the licensee's procedures in effect that demonstrate
compliance with the MICS
- Written system of internal controls
What details should be included in the written procedures? - Answer -Job titles
Procedures performed
How and where the procedure is performed
What do you reference a written system of internal controls? - Answer -Reference to
the applicable MICS number with a table that cross references each MICS to the page
number where each MICS is addressed
What percentage does the CPA have to retest to see if internal audit cross referenced
correctly? - Answer -10%
What procedures must be done with the CPA MICS Compliance Checklist? - Answer -
Perform inquiries, observations, and document compliance testing.
Unannounced observation of slot and table drop and count.
What is tested during drop and count? - Answer -Key controls and currency counter
must be tested.
When do you enter and leave the count room? - Answer -After the count is in process
and cannot leave until funds are accepted.
If you change location from surveillance you must? - Answer -Review and document
your transit period.
Can you test documents in consecutive months? - Answer -No
Who does the CPA MICS Compliance Checklist - Internal Audit? - Answer -External
audit - CPA firm and GCB Board
How often is the CPA MICS Compliance Checklist - Internal Audit completed? - Answer
-Once a year
The licensee must do what in an instance of noncompliance? - Answer -Develop
responses that implements corrective measures and transmits the responses to the
Board.
Can you use Internal Audit to complete the CPA MICS Compliance Checklist? - Answer
-Yes
Access to credit documentation is restricted. Which of the following is the most
restricted document? - Answer -Written-off credit instruments.
This checklist that includes statutes, regulations, and the Internal Audit testing steps is
called what? - Answer -Internal Audit Compliance Checklist
Detailed explanations must be provided for question on each checklist for responses
and for exceptions noted during document testing for what type of responses? - Answer
-All "no" and "N/A" responses.
The MICS checklist can be given to a casino employee for employee completion? -
Answer -False
Regulation 6.090(15) requires an Internal Auditor to determine compliance with -
Answer -All of the above
The Gaming Control Board has 5 members? - Answer -False it has 3 members
If Internal Audit is used to substitute for CPA work there are no items the CPA is
required to be perform. - Answer -False
Which of the following is NOT a purpose of the Gaming Control Board? - Answer -To
approve, restrict, limit, condition, deny, revoke, or suspend any gaming license.
When discipline against a gaming licensee is appropriate the Board acts in the judicial
capacity and the Commission acts in the prosecutorial capacity. - Answer -False
Board - prosecutorial
Commission - judicial
The Gaming Commission has 5 members? - Answer -True
When performing an observation of a required gaming activity (ex. drop and count) the
observation should be performed how? - Answer -On an unannounced basis to all
employees. (officers, directors, or employees)
What is the purpose of the gaming control board? - Answer -- Eliminate the undesirable
elements in Nevada gaming
- Provide regulations for licensing
- Provide regulations for the operation of gaming
- Establish rules and regulations for all tax reports submitted by the gaming licensees
- Protect the stability of the gaming industry through investigations, licensing, and
enforcement of laws and regulations
- To ensure the collection of gaming taxes and fees
,- To maintain public confidence in gaming
What are the division of the Gaming Control Board? - Answer -Administration
Audit
Enforcement
Investigations
Tax and license
Technology
What is the purposes of the Gaming Commission? - Answer -- Acting on
recommendations of the Board in licensing matters
- Ruling upon work permit case appeals
- Has the final authority on licensing matters
- Ability to approve, restrict, limit, condition, deny, revoke, or suspend any gaming
license
- Adopting regulations to implement and enforce the state laws governing gaming
What does the Internal Audit Compliance Checklist audit? - Answer -Statutes and
Regulations
What does the CPA MICS Checklist audit? - Answer -MICS
Why did the GCB set up an Internal Audit Compliance Reporting Requirement? -
Answer -To ensure all gaming licencees are performing a minimum amount and similar
types of compliance procedures with internal audit programs, checklists, and guidelines.
What checklist does the IACC used with? - Answer -In conjunction with the CPA MICS
Compliance Checklists
How far apart do multiple test dates have to be? - Answer -30 days
If you examine a document you must? - Answer -Include documentation by either
identifying form or make a copy of the document.
How long are documents retained? - Answer -5 years
What do you do if you find a procedure that was wrong? - Answer -Investigate and
make sure issue has been resolved and results are documented. Usually 6 months.
Who do you report audit work to? - Answer -Audit committee and to senior
management/ownership personnel independent of department under review.
What re the CPA MICS Compliance reporting requirements? - Answer -Standardized
agreed-upon procedures, sample sizes, document standards and report format required
by 6.090(9).
, Regulation 6.090 requires? - Answer -- Establishes minimum standards for internal
control procedures
- Requires licensee to submit a written system of internal controls
- The submitted system of internal controls is compared to the MICS
- Detailed, narrative description of the licensee's procedures in effect that demonstrate
compliance with the MICS
- Written system of internal controls
What details should be included in the written procedures? - Answer -Job titles
Procedures performed
How and where the procedure is performed
What do you reference a written system of internal controls? - Answer -Reference to
the applicable MICS number with a table that cross references each MICS to the page
number where each MICS is addressed
What percentage does the CPA have to retest to see if internal audit cross referenced
correctly? - Answer -10%
What procedures must be done with the CPA MICS Compliance Checklist? - Answer -
Perform inquiries, observations, and document compliance testing.
Unannounced observation of slot and table drop and count.
What is tested during drop and count? - Answer -Key controls and currency counter
must be tested.
When do you enter and leave the count room? - Answer -After the count is in process
and cannot leave until funds are accepted.
If you change location from surveillance you must? - Answer -Review and document
your transit period.
Can you test documents in consecutive months? - Answer -No
Who does the CPA MICS Compliance Checklist - Internal Audit? - Answer -External
audit - CPA firm and GCB Board
How often is the CPA MICS Compliance Checklist - Internal Audit completed? - Answer
-Once a year
The licensee must do what in an instance of noncompliance? - Answer -Develop
responses that implements corrective measures and transmits the responses to the
Board.
Can you use Internal Audit to complete the CPA MICS Compliance Checklist? - Answer
-Yes
