compamy
non-key
NOTE 1: For testing of Restricted Access to applications, and SAS 70 status, see IT
testwork.
NOTE 2: For segregation of duties review, see flowcharts.
Control
Number
Business
Process
Sub-Process Risk Description
Control
Objective
Control Activity
Preventive (P)
or Detective (D)
SOX to ER Audits Mapping/Test Plan
Control
Risk
Control
Testing Step Performed
Activity
(H, M, Owner (Who
Frequency
L)
or Title)
(D, W, BW,
M, Q, A)
1.1
Payroll (PR)
Data Entry
Payroll changes are
valid, properly
prepared and
authorized
Payroll
changes are
approved by
HR
HR department head or manager approves all
changes (except changes to employee
exemptions).
All payroll changes are
authorized.
BW
HR Director See Payroll Audit - For 10 pay periods (from 1/07-9/07 ), reviewed
Personnel/Payroll Transmittal for evidence of HR department head or
manager approval, noting no exceptions.
1.2
Payroll (PR)
Data Entry
Payroll data are
properly recorded
Data entry is
accurate
Verification by Payroll that all approved wage
adjustments and payroll changes have been
accurately entered in the Paychex system.
BW
Jamie Price, See Payroll Audit - For 10 pay periods (from 1/07-10/07), reviewed
Supr.
Personnel/Payroll Transmittal for evidence of cross-check by someone
independent of the data entry, noting no exception.
1.3
Payroll (PR)
Processing
Timesheets are not
correctly entered in
the PR system
Data entry is
accurate
Verification by Payroll (by cross-check and
initials) that approved manual changes for nonexempt hours and salary time sheets are properly
entered into Paychex.
BW
Jamie Price, See Payroll Audit - For 5 pay periods (from 1/07-5/07), reviewed Time Edit
Supr.
Report and Salaried Time Sheets for evidence of cross-check by someone
independent of the data entry noting no exceptions.
Reviewed 5 pay periods' Time Edit Report summaries (6/18-7/1, 7/2-7/15,
7/30-8/12, 8/13-8/26, 9/10-9/23) and Salary time sheets for 5 employees for
evidence of review noting manual changes on Time Edit Report summaries
for non-exempt employees and salary timesheets were approved by
department heads and cross-checked by someone independent of the data
entry in payroll noting no exception.
1.4
Payroll (PR)
Reporting
Payroll is not
accurate, valid, or
complete
Payroll is
Payroll department summaries are reviewed for
accurate, valid, accuracy,
validity,
completeness
and
and complete. reasonableness by department heads (or
designee) subsequent to processing.
BW
1.5
Payroll (PR)
Reporting
Payroll is not
reasonable and
properly recorded
Payroll is
reasonable.
1.55
Payroll (PR)
Reporting
Payroll is not
reasonable and
properly recorded
1.6
Payroll (PR)
Reporting
Payroll is not
properly recorded.
Jamie Price, See Payroll Audit - For 10 pay periods (from 1/07-9/07), reviewed Payroll
Supr.
Journals for evidence of review by department head noting no exceptions.
Racetrack Controller prepares the payroll
journal entry. Accountant reviews and approves.
P/D
Racetrack
Controller
See Payroll Audit - Reviewed 4 payroll journal entries (March-June) for
propriety (by agreeing to supporting documentation) and evidence of review
& approval by someone independent of the preparation, noting no
exceptions.
Payroll is
reasonable.
Mktg. Fin. Mgr. prepares the gross payroll
allocation journal entries, which are reviewed
and approved by the Racing Controller.
P/D
Racetrack
Controller
Reviewed 4 Payroll Journal Entries for June-September for evidence of
review and approval by the Racing Controller noting no exception.
Payroll-related
accounts and
vacation
accrual
properly
recorded.
Payroll-related accounts (reviewed monthly by
the Accountant (as part of the month-end
checklist), with quarterly reconciliations
(performed by the Accountant) reviewed for
reasonableness and propriety and approved by
Racing Controller. (Vacation accrual
Racing
Controller
See Payroll Audit - Reviewed 1 payroll reconciliation (1st Qtr) for
propriety (by agreeing to supporting documentation & GL), noting review
& approval by someone independent of the preparation, noting no
exception.
compamy
non-key
NOTE 1: For testing of Restricted Access to applications, and SAS 70 status, see IT
testwork.
NOTE 2: For segregation of duties review, see flowcharts.
Control
Number
Business
Process
Sub-Process Risk Description
Control
Objective
Control Activity
Preventive (P)
or Detective (D)
SOX to ER Audits Mapping/Test Plan
Control
Risk
Control
Testing Step Performed
Activity
(H, M, Owner (Who
Frequency
L)
or Title)
(D, W, BW,
M, Q, A)
1.7
Payroll (PR)
Rec
Payroll payments are Payroll
not accurate.
payments are
accurate.
Bank reconciliations are reviewed and approved
by someone independent of the preparation.
Accountant
1.75
Payroll (PR)
Rec
Each employee (or departmental designee) must
initial a form evidencing receipt of their check.
P/D
BW
Jamie Price, See Payroll Audit - Reviewed 10 pay periods (1/07 - 9/07) noting receipt of
Supr.
departmental payroll checks were properly evidenced by applicable
employees, noting no exception.
1.8
Payroll (PR)
401K
BW
Payroll (PR)
401K
VP-Finance reviews and approves 401K
worksheet from Payrolland compares to Paychex
401K report for accuracy
Payroll Clerk enters amounts from spreadsheet
into Paychex, and agrees back to spreadsheet.
Payroll Supv. reviews and approves.
1.9
Payroll payments are Payroll
distributed to existing payments are
employees.
not distributed
to existing
401K information is 401K
employees.
not accurate, valid, or information is
complete
accurate, valid,
complete
401K information is or
401K
not accurate, valid, or information is
complete
accurate, valid,
or complete
BW
VP-Finance See Payroll Audit - Reviewed 8 pay periods' (1/17, 2/14, 3/28, 4/11, 5/23,
6/20,7/18, 8/15) 401K worksheets for accuracy, noting evidence of review by
VP-Finance, noting no exception.
Jamie Price, See Payroll Audit - Agreed spreadsheets (see 1.8) to Paychex, noting
Supr.
evidence of Payroll review & approval; no exceptions
1.10
Payroll (PR)
401K
401K information is 401K
not accurate, valid, or information is
complete
accurate, valid,
or complete
401K Report from Paychex is agreed to
spreadsheet, and entered into WYSTARs Track
Now spreadsheet; they confirm batch totals &
post balances to the website.
BW
1.12
Payroll (PR)
Corporate
Payroll is
unreasonable
CFO reviews and approves the payroll analysis
prepared by the Corp. Controller
Payroll is
reasonable
(See Cage testwork- 3.33) - Reviewed 4 months' bank reconciliations for
propriety (agreement to adequate supporting documentation) and proper
approval, noting no exception. (February, March, June, July)
Jamie Price, See Payroll Audit - Reviewed the same pay periods as above (1.8) for
Supr.
evidence of WYSTAR confirmation noting no exception.
CFO
Reviewed Feb.-May 2007 payroll analysis for reasonableness and evidence
of CFO review & approval, noting no exception.
compamy
SOX to ER Audits Mapping/Test Plan
Control
Number
Sample Size
Exception?
1.1
no
1.2
no
1.3
no
5 salary time sheets
5 Time Edit Report
no
1.4
no
1.5
no
1.55
no
1.6
no
compamy
SOX to ER Audits Mapping/Test Plan
Control
Number
Sample Size
Exception?
1.7
no
1.75
no
1.8
no
1.9
no
1.10
no
1.12
no
Monticello Gaming & Raceway
SOX Test Plan - 2008
Control
Number
Business Sub-Process
Process
Control Activity
Control
Control
Testing Step Performed
Activity Owner (Who
Frequency
or Title)
(D, W, BW,
M, Q, A)
Sample Size
Exception?
Initials
2.1
Purch/AP
MRMI &
Racing
The A/P Dept. reviews the purchase
documentation, noting proper required
signatures prior to data entry.
A/P Supr
2.5
Purch/AP
MRMI &
Racing
The accounting staff and VP of Finance both
review all MRMI expenditures for propriety.
VP-Finance initials his review. In the absence
of VP-Finance, the Racing Controller, Sr
Accountant, or Mktg./Fin. Mgr may initial the
final review.
2.15
Purch/AP
MRDC
VP-Finance (or Mktg/Fin Mgr.) reviews &
approves checks prior to mailing.
Rec
1.7, 2.18, Payroll
3.33,
4.48,
4.91,
2.17 Purch/AP
Review payments for MRMI & Racing for proper AP approval.
5 each (MRMI
& Racing) per
month
VP-Fin
Reviewed MRMI & Racing checks for evidence of review (initials on check
stub).
5 each (MRMI
& Racing) per
month
VP-Fin
Reviewed MRDC checks for evidence of review (initials on check stub).
Bank reconciliations are reviewed and approved
by someone independent of the preparation.
Accountant
Review bank reconciliations for proper approval (initials).
each month
MRDC
Journal entries are independently reviewed and
approved by someone independent of the
preparation.
Accountant
Review MRDC journal entries for evidence of review and approval by
someone independent of the preparation (initials).
each month
5/month
3.27
Revenue
POS/NonGaming
VGM Accountant reviews & approves the
journal entry after posting to the GL.
Accountant
Reviewe POS journal entries for evidence of VGM Accountant review &
approval.
5/month
3.31
Revenue
RV
A 2nd VGM Accountant evidences an
independent check by reviewing for propriety
and initialing the Main Bank Rec journal entry
and the VGM journal entry.
Accountant
Review VGM journal entries, noting all contain evidence of VGM
Accountant's proper review and approval (initals).
5/month
3.32
Revenue
RV
VGM Accountant reconciles the Main Bank
Reconciliation to the GL.
Accountant
Review reconciliations of the Main Bank Reconciliation to the GL for
evidence of Accountant's initials.
4.46
Mktg
Marketing Sr. VGM Accountant (or someone independent
Reimbursem of the posting) reviews and approves journal
ent
entries for restricted cash receipts and accrual of
8% of marketing allowance.
Accountant
Review journal entries for proper approval (initials) by someone
independent of the posting.
4.8
AP /
ExpenseRacing
Horsemen's Journal entries for purses and interbank transfers
Purses
are prepared by the Racing Controller and
reviewed and approved by someone independent
of the preparation
Accountant
Review journal entries for evidence of proper review and approval (initials)
by someone independent of the preparation.
each month
5/month
each month
Date
Monticello Gaming & Raceway
SOX Test Plan - 2008
Control
Number
Business Sub-Process
Process
Control Activity
Control
Control
Testing Step Performed
Activity Owner (Who
Frequency
or Title)
(D, W, BW,
M, Q, A)
Sample Size
Exception?
Initials
The VGM Senior Accountant. reviews and
approves the depreciation journal entries
prior to posting.
Accountant
Review journal entries for evidence of review and approval by VGM
Accountant.
Dir - Mktg
Review manual point adjustments for proper approval (initials) by someone
who does not perform Players Club transactions (Director, etc.)
5.9
F/S Close
Depr
each month
4.2
AP /
Expense
Players Club Marketing Dept. reviews and approves any large
manual point adjustments on a monthly basis.
1.3
Payroll
(PR)
Processing
Verification by Payroll (by cross-check and
initials) that approved manual changes for nonexempt hours and salary time sheets are properly
entered into Paychex.
BW
Jamie Price, Review Time Edit Report and Salaried Time Sheets for evidence of crossSupr.
check by someone independent of the data entry (2 initials).
1.75
Payroll
(PR)
Rec
Each employee (or departmental designee) must
initial a form evidencing receipt of their check.
BW
Jamie Price, Review that receipt of departmental payroll checks were properly
Supr.
evidenced by applicable employees (signatures)
1.5
Payroll
(PR)
Reporting
Racing Controller prepares the payroll journal
entry. Accountant reviews and approves.
Racing
Controller
Review payroll journal entries for evidence (initials) of review & approval
by someone independent of the preparation.
1 / month
1.55
Payroll
(PR)
Reporting
Mktg. Fin. Mgr. prepares the gross payroll
allocation journal entries, which are reviewed
and approved by the Racing Controller.
Racing
Controller
Review payroll journal entries for evidence of review and approval (initials)
by the Racing Controller.
1 / month
4.1
AP /
Expense
Players Club The Racing Controller reviews, approves, and
initials the VGM Accountants month-end
journal entry recording the expense and liability
for outstanding redeemable cash points.
Racing
Controller
Review outstanding redeemable points expense journal entries for evidence
of properly review and approval (initials) by the Racing Controller.
1 / month
4.5
AP /
ExpenseRacing
Horsemen's Either the second Assistant to the Racing
Purses
Controller or the Racing Controller compares
the purse totals on the Overnight Sheet to the
Purse Summary. After confirming the totals,
the Overnight Sheet is initialed.
D/W
Racing
Controller
Review Overnight Sheet for evidence of review (initials).
5/month
1 / month
1 dept. / month
1 / month
Date
Monticello Gaming & Raceway
SOX Test Plan - 2008
Control
Number
Business Sub-Process
Process
Control Activity
Control
Control
Testing Step Performed
Activity Owner (Who
Frequency
or Title)
(D, W, BW,
M, Q, A)
Sample Size
Exception?
Initials
4.7
AP /
ExpenseRacing
Horsemen's The Racing Controller or designee agrees the
Purses
weekly purse transfer to the supporting
Overnight Sheets and compares the weekly total
to the (upper limit) range established by the
Exec. VP & GM, then signs off on the purse
transfer (and then prepares an inter-bank transfer
of funds from the Purses Escrow account to the
Horsemen's purses acccount.)
Racing
Controller
Review weekly purse transfer for evidence of Racing Controller's review of
purse amounts (initials).
1 / month
5.41
F/S Close
F/S Close MRMI
MRMI reconciliations, account analyses and
revenue entries are completed in accordance
with a checklist, reviewed for propriety, and
approved by the Accountant and Racing
Controller.
Racing
Controller;
Accountant
Review checklists for evidence of review & approval (initials) by someone
independent of the preparation.
1 / month
5.40
5.43
F/S Close
F/S Close MRMI &
MRDC
VP-Finance reconciles the intra-company
balances (Racing & VGM) and signs off on draft
financials before submission to Corp. Controller.
CFO also reviews & signs off.
VP-Fin
Review financial statements for both MRMI and MRDC for evidence of
review and approval by VP of Finance and CFO (initials).
Date
Monticello Gaming & Raceway
SOX Test Plan - 2008
Control
Number
Business Sub-Process
Process
Control Activity
Control
Control
Testing Step Performed
Activity Owner (Who
Frequency
or Title)
(D, W, BW,
M, Q, A)
Sample Size
Exception?
Initials
Quarterly Controls
1.6
Payroll
(PR)
Reporting
Payroll-related accounts (reviewed monthly by
the Accountant (as part of the month-end
checklist), with quarterly reconciliations
(performed by the Accountant) reviewed for
reasonableness and propriety and approved by
Racing Controller. (Vacation accrual is annual)
5.21
F/S Close
Asset
Impairmt/Al
low for
Doubtful
Accts
MRMI periodically reviews long-lived assets to
determine if carrying values are recoverable or
should be reduced to fair value. Journal entries
for any necessary adjustments are made and
approved by a person independent to the J/E
process.
Racing
Controller
Review payroll reconciliation for evidence of review & approval (initials)
by someone independent of the preparation.
VP Fin, CFO Review evidence of the review by Management (initials) of MRMI's longlived assets for impairment.
Date
