Auditing of Smackey Dog Foods, Inc Term Paper Example | Topics and Well Written Essays - 1750 words

Auditing of Smackey Dog Foods, Inc - margin Paper compositors caseThe paper tells that U.S. Securities and Exchange Commission (SEC) has an influence in setting the GAAP principles, i.e. broadly speaking Accepted Accounting Principles and thus can have a substantial impact over the auditing border to be taken into consideration while reviewing the financial revealings of Smackey Dog Foods, Inc. From an overall point of view, it plays a springy role in assisting the auditing process involving the financial statements of Smackey Dog Foods, Inc by specifying and reporting requirements necessary for the fair disclosure of story. Hence, SEC can assist Smackey Dog Foods, Inc by maintaining orderly, fair & efficient markets and also help in the process of capital formation. SEC can also help Smackey Dog Foods, Inc plan its future blowup and growth strategies ensuring sufficient return to the investors and stakeholders as well. In addition, SEC assists the investors in decision-makin g and the auditors by generating aw atomic number 18ness regarding the different legal treatments to be noted while executing the auditing process to ensure a just written reporting disclosure which can have certain direct implications on the audit in Smackey Dog Foods, Inc. The subjective activities involved in the initial planning of an audit entail certain steps. The first step is the decision making part where the auditor decides whether to serve the new client. Notably, considering the fact that this decision should be taken at an earliest stage before any significant cost is incurred, Keller CPA will focus on the legitimate situation faced by Smackey Dog Foods Inc. Identification of the need of audit in any plaque is also a part of initial planning. To avoid misunderstanding, the audit engagement process will be discussed with the client. With this regards, Keller CPA had sent his staffers, Ben and Maureen, to Smackey Dog Foods Inc. for the audit engagement. The auditor requires independence to perform his urinate taking into account that there should be no management integrity issues in the organization (American Institute of CPAs, 2012). Question 3 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 force of Each. The four stages of the audit are Preliminary review, Audit Report, Fieldwork, and Planning. In the planning phase the research and entropy gathering is done for the audit process. The research and data may contain the prior audit files, mount up policies, financial reports, administrative regulations, shared audit programs, internet sites and job descriptions among others. A meeting is fixed to bring on what may occur in the audit, the inhering auditor meets the desired person from the department to identify the issues, and surplus areas of concern. Preliminary Review In the preliminary review the existing control composition will be assessed and evaluated to make the necessary variations in the audit scope draft, program, and questionnaires. Keller CPA will also review the internal control formation of the department by using different kinds of tools and methods to gather and evaluate data most the operation. This will help to ensure about the areas of high risk and to design a program to work in the fieldwork stage. Fieldwork In this phase auditor will perform transactions and logical reviews, 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 be operated and is being determined by Keller CPA. The audit program is to be reviewed to ensure that procedures described within are appropriate