Audit Case Study : Keystone Computers

1480 Words May 2nd, 2016 6 Pages
Audit Case – Keystone Computers An important decision for any shareholder is deciding whether or not to do business with that company. When a business is audited, the operations are reviewed to make sure that nothing is being hidden. An auditor will review the company’s financial statement and practices to confirm that each are direct and correct. The financial statements are the business’s way of representing them and showing that they are following the Generally Accepted Accounting Principles. The audit process is an important one because it provides a platform for the auditor’s opinion concerning the financial statements of the company. As part of the audit process the auditor will conduct an audit plan that outlines a number of actions that he or she will be perform while also detailing the reason for those actions. With every audit, the business’s management is in charge of handing over the financial statements that the auditor will review; while the auditor will review the statements for any material or immaterial misstatements.

The audit plan for Keystone Computers & Networks, Inc. is below.
• Keystone Computers & Networks, Inc. is a retailer of computer workstations and networking software to customers who own their own business.
• The stockholders are Terry Keystone, Mark Keystone, John Keystone, Keith Young, and Rita Young.
• Terry and Mark are the only ones that take an active role in the management of the business by being members of the…

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