You Decide Smackey Foods Accounting

Worksheet for You Decide

Name _Sean Russi__ Course Code _AC/555__Grade ___/Date_08/15/2011__

Questions:

Q1: hash out how the SEC has influence (if any) over the scrutinize of Smackey Dog nourishments, Inc.

ascendant:

The SEC would definitely have influence over the audit of Smackey Dog Foods. The SEC would involve to make sure that the meeters from Keller certified public accountant firm followed the audit standards while performing the audit.

Q2: Discuss the substantial activities involved in the initial planning of an audit. How do these wholly specifically to the Smackey Dog Food client?

Solution:

Since no one at Keller has experience in the Dog Food manufacturing field it should be a part of the planning to gain an understanding of the industry. The auditors should not only look at the championship risk of exposure but also delimit acceptable risk levels for audit risk as well as set materiality.

Q3:Discuss the 4 stages of the audit and the major activities performed by the auditor in each phase. Give an example of how each of these specifically applies to the Smackey Dog Food, Inc audit. For instance, examine the apparent internal control weaknesses and affirmable negative outcome of each.

Solution:

Planning and risk sagacity, significant tests, test of internal controls, and audit completion.





Planning and Risk assessment During the planning stage the audit team as mentioned preliminary needs to gain an understanding of the Smackey dog Foods business and industry. after they do that they can assess the risk. The first risk they may want to look at is the control risk by taking a look at how the internal controls placement works at Smackey Dog Foods.

Test of Internal Controls By testing the effectiveness of the internal controls the auditor can bound the control risk that lies within the company. They can do this by taking a small sample of invoices and looking for hindrance by the clerk that the transaction was approved and verified.

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