Thea, nice work on the paper! You answered almost every question competently and thoroughly. The only question you might have done better on is Q10 for more detail on the rules that apply.. Thank you!
Worksheet for You Decide Name Thea Zental____ Course Code AC 555_____ Grade ___ Date 02/19/2012
Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.
Solution: The SEC (Securities and Exchange Commission) has a great influence on the audit of Smackey Dog Foods, Inc., which is conducted by Keller CPAs. When auditing a publicly held company, auditors need to observe principles. The ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of What internal controls issues do you identify?
Solution: According to auditing standards and professional conduct the auditor is required that the auditor relay information, in writing, to management and those charged with governance, significant deficiencies and material weaknesses identified in an audit.
The following internal control issues were found as regards the audit for Smackey Dog Food, Inc. and thus have to be communicated to appropriate people within Smackey: 1. Granting of commissions to sales people based on estimated sales. This internal control issue presents risks as regards the company’s financial resources as sales people might be paid for sales not made, and there is no refund process for commissions paid for this type of sale. 2. Segregation of duties as regards the handling of inventory. With only one person assigned with the preparation and approving all inventory records, the changes of material misstatements are high. 3. Lack of control procedures and guidelines in handling returned dog foods which presented opportunities wherein employees take home returned items. Lack of control procedures and guidelines in handling and recording accounts receivable. This is much more important now since a major client which represents 31 % of
External Auditing (AC 555) Professor: Marie Wang Project: You Decide- Smackey Dog Foods, Inc. by LJubomir Gataric Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC assists in providing investors with reliable information upon which to make investment decision. The Securities Act of 1933 requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval. 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…
Worksheet for You Decide Name Cathie Reid Course Code ACC555 Grade ___/ Date_12_/12_/12_ Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC does not have direct influence over the audit of Smackey Company because, Smackey is not a public held organization, they do not have assets in excess of $10 million, and they do not have over 500 stockholders; which are the requirements for public and privately held companies…