The document describes the business processes and organizational structure of Barker Trading Group. It outlines three key business processes: the class account process where an investment committee suggests investments that are executed and balanced by a director and risk officer; the individual account process where a trader executes trades that are reviewed and balanced by a director and risk officer; and the operating costs process where expenses are submitted to and authorized by the Dean's office based on an approved budget. The organizational chart shows that the board of directors oversees a director who manages the BTCM class account, student accounts, and a foundation account. Financial transactions are recorded by a brokerage and financial reports are generated based on brokerage reports.

1. Barker Trading Group
Business Processes
Accounting 492
Audit

2. Organization Chart
Board of
Directors
Director
(Terry)
BTCM (Class Student
Wells Fargo Dan 550 Foundation
Account) Accounts
Accounting 492
Audit

3. Business Process – Class Account
Investment Portfolio
Committees Financial
Officer reviewed
suggest Transactions reports
executes and
investment/ recorded by based on
trades on balanced by
class brokerage brokerage
Think or Director and
approves reports
Swim Risk Officer
Accounting 492
Audit

4. Business Process – Individual accounts
Portfolios
Financial
Investment reviewed
Trader Transactions reports
parameters and
executes recorded by based on
set by balanced by
trades brokerage brokerage
director director and
reports
risk officer
Accounting 492
Audit

5. Business Process – Operating costs
Disbursements
Budget Dean is
Expenses authorized by
approved by signatory on
submitted to Dean’s
Board of checking
Dean’s office assistant based
Directors account
on budget
Accounting 492
Audit

6. Transfer of funds
Investors
Legal 11,374
36,426
Fees
Wells Fargo 30,000 Foundation
68,834 19,962 Seminar
23,000 20,512
Trading 5,700
Accounts (15) Dan 550
424,491 (5,682)
24,056
Operational
Expenses
Accounting 492
Audit

7. What you need to do
• Understand for investing and cash each
– Account
– Business Process
(initiate, authorize, process, record, report)
• Understand internal controls at entity and transaction
level
• Assess inherent risk, control risk, and detection risk at
assertion level
• Design tests of controls (nature and extent)
• Design substantive tests (nature and extent)
• Use a logical organization for your workpapers
Accounting 492
Audit