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In: Other Topics

Submitted By latonberry

Words 1461

Pages 6

Words 1461

Pages 6

Laton Berry

AC555

Due June 21, 2011

Jean Inabinett

Introductory

In order for me to audit this company, they would first have to produce a financial statement for me to audit. I will be providing what I have researched and what steps I would take if I were to audit Smackey Dog Food by using some audit procedures, tests, and reports. I will discuss if there were any rules violated and why. I will also discuss if there are any risk, and legal liability involving Smackey Dog Food. I will gather all of the evidence I find to determine my conclusion in what audit opinion I will give them. The audit opinion will be based off how high of material I think will affect Smackey’s Dog Food financial statements in more than on type of account or in a high value in dollars.

SEC Influence over the Audit of Smackey Dog Food

Smackey Dog Food is required to file a Form 10-K annually within 60 to 90 days after the close of each fiscal year also might include audited financial statements. If Smackey is a publicly held company than, they are required to file a Form 10-Q, which contains certain financial information and requires timely auditor reviews. The financial statements required are Smackey’s balance sheet from the last fiscal year, and income statement from the last quarter. They do not have to report their statement of cash flows; the SEC does not require this.

The Initial Planning of the Audit

The first step would be to conduct a new client investigation done in order for me to take them on as a client. I would have to get Smackey’s permission in order to get additional information about them from their previous auditor for me to make my final decision to accept them as a client. The second step would be for me to understand the dog food industry and their internal controls. I would need to know their processes, expansion globally, intangible…...

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