Dog Food

1233 Words Nov 30th, 2013 5 Pages
Worksheet for You Decide

Name ____________ Course Code _________ Grade ___/ Date__/__/__

Questions:

Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.

Solution:

Smackey Dog Foods is not a publicly traded company, so it’s not required to follow SEC regulations. However, the auditors are required to follow audit standards. (AICPA Code of Professional Conduct, Sarbanes-Oxley Act, and SEC rules)
Therefore, SEC has great influence over the audit of Smackey Dog Foods. Inc.

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

Solution:

Initial auditing planning involves 4 things: (1) The
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(4) The firm select one audit manager, Pete, and two audit staffs, Ben and Maureen out to the client.

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 possible negative outcome of each.

Solution:

(1) Planning Phase: Auditing standards require the audit to be properly planned; this is to ensure that the audit is conducted in an effective and efficient manner. In order to plan properly, we need to: * Understand the client’s business and industry: * Assess client business risk * Perform preliminary analytical procedures

(2) Internal Control Phase: The auditor normally assesses the risk of material misstatement by examining both the general control environment and the application controls per business process (3) Testing Phase: After the auditor ahs planned the audit the auditor needs to gather sufficient appropriate audit evidence on which to base his audit opinion. (4) Reporting Phase

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Q4: Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?

Solution:

Auditor’s responsibilities include understanding and testing internal control

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