Nobody downloaded yet

Auditing Process and Procedures for Smackey's Dog Food Inc - Term Paper Example

Comments (0) Cite this document
SEC influence over the Smackey Dogs food Inc. relate to issues of independence roles for the audit team. The audit standards is one of the influences to be observed, that have to be followed in establishing the independence of auditing team involved in the audit of Smackey. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Auditing Process and Procedures for Smackeys Dog Food Inc
Read TextPreview

Extract of sample "Auditing Process and Procedures for Smackey's Dog Food Inc"

Download file to see previous pages SEC influence over the Smackey Dogs food Inc. relate to issues of independence roles for the audit team. The audit standards is one of the influences to be observed, that have to be followed in establishing the independence of auditing team involved in the audit of Smackey. The relationship between the owner’s (Kim) husband and the audit manager Pete is going to influence the disclosure and materiality of the audit contents. The fact that there is a relationship between the bank the loan is being sort and Alan, Kim’s Husband depicts a loan relationship. SEC requires ethical principles to be observed by auditors. Independence is one of the six ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. The other principles are responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services. Section 303 of the SEC prohibits officers or directors of a company from manipulating, misleading, coercing or acting fraudulently towards the audit team in a manner to influence the auditor to issues financial information, knowingly or not, that the act could lead to rendering the audit immaterial. In this case, Alan obtains information from the audit manager during beers that will be shared with Kim, the owner and further Sarah who is seeking the loan. This is an issue that ought to be addressed as the result will be an adverse opinion. The underlying issues of Ben’s relationship with the bookkeeper Anita could be controversial in the resulting audit opinion. SEC elaborates on quality of disclosure and evidence. There is no proof of how far the relationship went but the reliance on the word of mouth. Mutuality of interests is identified in this case between the two parties. This is likely to jeopardize the independence of the audit staff. Over auditing of a company’s financial reports only materializes to full disclosure. However, the audit process should be within the required set guidelines given by SEC. Question two In the initial planning of the audit, the activities to be included are: an understanding of the company in terms of description and history of the company, tax issues disclosure, types of the customers, the internal audits, timing of the audit process amongst others. An assessment of the client’s business risk will be done to see whether it is achieving its objectives. The audit team should assess the risk of material misstatements arising from Smackey’s business risk. This is seen in the high wastage in Smackey’s Best Dog division that presents a lot of business risk, and therefore material misstatement risk. Performance of preliminary analytical procedures. – A comparison will be made to that of the industry. This helps in identifying the areas of high risk of materiality. Set materiality and assess acceptable audit risk and inherent risk- precise and reliable judgment is going to be applied by the auditor in assessing the materiality levels. Question three Stages of an audit Planning – the auditor outlines all the activities that he will follow during the entire process. The auditor should lay down his plan for the vital internal controls to be assessed. In the case of Smackey, the team should focus on: sales forecast, receivables approval and authority followed, stock taking, fraudulent dealings in the company, debts approval etc. Test of Internal control – this process follows a critical analysis internal controls of the records, procedures and processes followed in the company. The auditor should analyze the sales forecast process, be present during the stock take, and consider evaluating the control checks for stores. The weakness in the stock control is seen where the employee is stealing from the company, assessing the debts and the pending legal suits. The effects of the customers’ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Auditing Process and Procedures for Smackey's Dog Food Inc Term Paper”, n.d.)
Auditing Process and Procedures for Smackey's Dog Food Inc Term Paper. Retrieved from
(Auditing Process and Procedures for Smackey'S Dog Food Inc Term Paper)
Auditing Process and Procedures for Smackey'S Dog Food Inc Term Paper.
“Auditing Process and Procedures for Smackey'S Dog Food Inc Term Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Auditing Process and Procedures for Smackey's Dog Food Inc

Auditing of Smackey Dog Foods, Inc, and further relevant information required for the audit. The internal controls of Smackey Dog Foods Inc. are to be recognized during the preliminary review which is being operated and is being determined by Keller CPA. The audit program is to be reviewed to ensure that procedures described within are appropriate to meet the audit objectives. The timeline of the audit depends on the objectives, and the accessibility of the information. Surveys, advice & informal communication are the process of fieldwork. Audit Report: The final output will...
7 Pages(1750 words)Term Paper

Auditing process

..., and ultimately leading to the downfall of the audit farm. Engagement risks can further be subdivided into three types of risks, namely 1) Client’s business risks, 2) Auditor’s business risk and 3) Audit risk. In the cited case of Aerospace Lighting Inc. (ALI) there are several audit issues related to engagement risks. All those audit issues involved with ALI and its impact on the financial statements and the audit process have been discussed here. ALI is a Chicago based company which is involved in the business of providing cabin lighting system to its clients in aerospace industry. There has been a change in ALI’s...
8 Pages(2000 words)Case Study

Food, Inc

...? 18 Apr. Ethical issues in Food, Inc. Human Health: Among many important ethical issues, one alarming ethical issue that Food Inc. talks about is the way food is contaminated, how it approaches the consumers and what impacts it has on the health of the consumers. Our current food system often has many unintended and saddening consequences. The contamination of food exposes people to a lot of health risks. In the film, a toddler’s mother dies of E. coli which she acquires from consuming a hamburger. The most fundamental cause of the increased risk of E. coli is the corn that the cows are fed. It is quite cheap and...
2 Pages(500 words)Essay

Food Inc. Reflection

.... With its help you begin to realize that all this time you have been just a marionette in a rough fight for profits of food companies that do not care for your life, making production “faster, fatter, bigger, cheaper” (Kenner, 2008). The main point of the movie is an idea of own health protection with a help of persnickety and conscious food choice. “Food Inc.” reveals the process of whole industrial system changes. Nowadays agriculture develops rapidly. However, despite high technological level, the quality of the agricultural products continues to decrease. Companies cheat on consumers, providing them with attractively packed products, meanwhile,...
3 Pages(750 words)Essay

Process Explanation -Dog Grooming

...Dog Grooming Anyone who has ever had a dog as a pet will understand the importance of proper grooming in the routine care of the animal. Large long haired breeds, such as the Golden Retriever, are a special problem as their coat can cause them discomfort in the summer, or be the source of odors for the pet owner. Typically, we think of grooming as giving the dog a bath, trimming the excess fur, and drying and brushing the dogs coat. However, grooming is much more than just a once-a-month routine. Grooming a Golden Retriever is an ongoing process that involves bathing, attention paid to important areas, and develops a bond between owner and their pet. Baths, a traditional part of grooming, should only be given about once a month... . This...
2 Pages(500 words)Essay


..., as opposed to one that is used to assist with healthy living of families. Works Cited Kenner, Robert (producer). Food Inc. US: Magnolia Home Entertainment, 2009. Outline I. Introduction a. Thesis: Food Inc shows how the food industry is based on corporate structures instead of offering health and well – being to individuals. II. Summary of Food Inc a. Problems with corporate farms and appearance of natural farms b. Issues with health and food, such as obesity and e-coli c. Problems with genetic engineering, cloning, pesticides on food III. Analysis of film a. Main points are...
2 Pages(500 words)Movie Review

Food Industry in the USA

...Food Inc Most Americans prefer going for tasty, cheap and fast meals (Robert, 2). But what isthe cost of considering convenience and value over environmental impact and nutrition? These are the main areas of concern that Food Inc examines. Directed by Robert Kenner, the film examines the subject from all perspectives, addressing advocates, authors, and farmers. Like other co-producers of “Fast Food Nation”, Erick Schlosser and “The Omnivore’s Dilemma”, by Pollan Michael, Food Inc tries to educate people on the dangers of fast foods, and the importance of considering nutritional value and environmental...
1 Pages(250 words)Movie Review

The Film Food Inc

...The Film Food IncFood, Inc. is a highly insightful documentary film released in 2008. It is directed by Robert Kenner. The purpose of the director is to raise awareness about unethical and unhealthy choices made in corporate farming in the US to produce food. This purpose is very carefully chosen by Kenner because it hopes to put an end to all those ways employed by farmers which are harmful to both environment and animals. It is clear that the documentary targets government and common public as its audience. These groups are chosen as primary audience because the director deems it critically important to eliminate ignorance concerning the subject of...
4 Pages(1000 words)Essay

Why dog food quality matters

...or is susceptible to illness. The second most important thing is keeping a check of when to feed the dog kept in the household. Most dogs are trained into asking for food when they get hungry and owners usually establish timings for feeding but keep in mind that do not over feed or under feed the canine as it can impact the health and over all goodness of the animal. Dog foods are different than the human foods and some chemicals in the process of manufacturing are not mentioned so it is better to avoid the type of food that has chemical preservatives used in it, since it can harm the...
5 Pages(1250 words)Research Paper

S. B. Cottone Inc

...S.B. COTTONE, INC. Part II. Marketing Function Audits: Product and Price A. Marketing Segmentation, Targeting, and Positioning Segmentation Segmentation refers to segregating buyers into groups that have common need. This strategy helped S. B. Cottone, Inc. reduce the risk in deciding where, when, and how, and to whom it will sell its products or brands. The strategy also assisted the company to direct its marketing effort to the designated market. Segmenting process also develops the ability of the company to match the needs of the customer. S.B. Cottone has defined its segment into building and residential constructions due to its mounting growth...
7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Auditing Process and Procedures for Smackey's Dog Food Inc for FREE!

Contact Us