Acct 555 Smackey

With different industry definitions and viewpoints, fraud can be a tough issue for audit committee members to grasp for oversight purposes. The legal obligations of audit committee members have intensified because their standard duty of care and loyalty to the entity has increased in light of management fraud activities.

The auditor must remember that all information collected during the audit needs to be sufficient enough to further the audit process. The information must not only possess the two qualities, relevance and reliability, but it should also test various assertions. For instance, in the audit of Walmart, the auditor should make an attempt to acquire information such as financial statements from the company’s bank, as opposed to acquiring the statements from Walmart’s management. Taking such crucial information from Walmart’s management will put the reliability of that information into question. It is possible that management may manipulate the financial statements, so that they are more appealing to the public and investors. Management may do things

The 4 stages of the audit are 1) Planning and risk assessment, 2) Test of internal controls, 3) Substantive tests procedures, and 4) Finalization.

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

Stage 4: Audit Completion - At this stage, the audit team compiles a report to Smackey’s management as regards

Q1. What is the link between audit risk and engagement risk? How does the audit risk model allow the auditor to deal with these risks in the most cost effective manner?

3. The third stage is Fieldwork. During this stage, the auditor should observe firsthand how the company operates. They need to check out all the areas that are less effective to the welfare of the company’s finances. In the case of Smackey, the auditor would note about all the returned dog food from their specialty line that is just sitting on the loading dock. They also noticed that the dog food is being thrown out and then taken back and loaded into Henry’s trunk (possible misappropriation).

The audit team focused on preforming groundwork analytical procedures. A comparison of the performance of Smackey’s Dog Foods Inc to other similar industries was used to validate the original assessment of the risks. Performing the procedures helped detect areas that pose a high risk of the material misstatements. Another important part of the planning of the audit was to set a balance of materiality that is appropriate. The situations that

The purpose of this paper is to discuss the SEC’s influence on auditing a private company and the essential activities involved in the initial planning of an audit. Next the discussion will delve into four stages of the audit and tasks performed by the auditors as well as internal control findings and various aspects of the audit.

The first audit planning activity involves the decision of whether to accept the audit engagement. For several reasons, the engagement with Smackey Dog Foods, Inc. may expose Keller CPAs to undue liability. However, as the Company will not be filing financial statements with the SEC, liability will be limited to foreseen and foreseeable users and the Company itself. We will look at a few specific items in some detail.

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users (Boynton & Johnson, 2006). In auditing there are many attributes that describes the auditor’s work. Elements of the Generally Accepted Auditing Standards are followed by auditors. The Generally Accepted Auditing Standards apply to financial, operational, and compliance audits. Auditing public traded companies has been effected by the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board. Auditors have additional responsibilities because of

In Part I of the case, you performed preliminary analytical procedures for Pinnacle (pp. 245–247). The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence.

This paper explores the ZZZZ Best Company which was begun by a 16 year old individual who was able to pull the wool over the eyes of many customers, investors and auditors. This paper will define the difference between review and audit when it comes to financial reports, comments on the procedures provided with regard to the management assertion of occurrence, verification of payments for jobs and how they can lead auditors to improper conclusion, the purpose of predecessor-successor auditor communications, as well as whom needs to initiate the communication and information that needs to be obtained. The paper also addresses the limitations of the confidentiality agreement and how and when

Internal and external audits are valuable to be audit compliant. Internal audits evaluate the performance within the organization by incorporating the functions of management; however, external audits involve external vendors performing an evaluation (Bateman & Snell, 2007). The majority of auditing conducted by Wal-Mart is handled internally by vigorously participating in its private-label auditing (Audits Play Crucial Role in Safety, 2008).

Organizations produce financial statements that give data about their money related position and execution. This data is utilized by an extensive variety of partners (e.g., financial specialists) in settling on financial choices. Regularly, those that possess an organization, the shareholders, are not those that oversee it. In this way, the proprietors of these organizations (and different partners, for example, banks, suppliers, and clients) take solace from the autonomous affirmation that the monetary explanations genuinely present, in every single material regard, the organization 's money related position and execution.