No spark with magneto is super simple to diagnose with a 12v test light, but the first step is even simpler.
Grab the spark plug in your hand, then kick the engine over. If you feel absolutely nothing, the secondary coil has an open in it's wiring or the primary coil has an open in it's winding. If you felt a bit of a tickle, it's time to employ the test light.
First, you must remember that when using the test light in line with the ignition wiring the system will not throw a spark even if everything is working properly. Spark cannot be made while the test light is attached in the electrical circuit.
Remove the points lead from the secondary coil, attach that to one side of the test light lead and the other to ground. When kicking over you should see a bright-ish light pulsing on to off to on etc.
If you see a bright light that does not pulse, the points are not making contact when closed. If you see no light, insulate the contacts of the points and try again. If light now, the points are grounded. If still no light, remove and isolate the wire from the primary coil to the points, try again. The primary coil should put out over 16v dc on a meter. Ohms don't really matter to me, dynamic testing tells all.
If you got a good pulsing light at the secondary coil lead, attach it back to the secondary coil, then perform the same test at the ground side of the secondary coil. You should see a less bright flashing light. If that's the case, re-attach the ground lead to the coil and place the test light between a ground and the spark plug lead. A working system will flash the test light.
I work on a lot of small magneto equipped engines. When I figured this test procedure out diagnosis became very simple, and my Fluke meter got kinda dusty...