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
I would like to share the a procedure at my work where we spend about 15-30 mins every morning to conduct a 6S audit where we need to go through a checklist and make sure that critical things required for work are in place and ready to use.
Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions?
Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.
Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.
Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.
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).
To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.
Discuss the audit risk model, and ascertain which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Justify your response.
In preparing for the audit all aspects of a company need to be reviewed. For the preparation of the audit several things must be considered as define in the following pages.
3. Research auditing standards and describe the typical procedures that an auditor would perform in auditing a fair value estimate such as the
Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.
Conduct a brand audit for the CEO of Cheerios and evaluate the equity of the brands marketing and customer brand knowledge plus make suggestions how to improve the brand.
Preparing the Audit – Here, the auditor prepares a detailed audit plan, taking into consideration all relevant facts and records regarding the Company or ship, whichever the case may be. Ideally, the plan should incorporate the Company’s/Ship’s management, so as to enhance communication and mitigate discrepancy. To effectively use resources and available information, the plan should be produced fair flexibility to include:
Issue Choose an issue or problem for investigation Determine title in the form of a question Teacher to approve question before
In this course so far you have conducted the following steps toward completing the capstone strategic audit: