Smackey Dog Foods, Inc.: Case Study
Neal Williams 4-7-2015 ACCT 555 You Decide Assignment
Smackey Dog Foods, Inc. has approached Keller CPAs to conduct an audit of the financial statements. The purpose of this summary is to describe the expectations that Keller CPAs has regarding how the audit of Smackey Dog Foods, Inc. will be conducted. Smackey Dog Foods, Inc. is a privately held corporation and is not …show more content…
The first stage that specifically applies to the audit of Smackey Dog Foods, Inc. is the planning and risk assessment stage. For Smackey, the risks can initially be assessed by obtaining understanding of Smackey’s business and its industry. More specifically, the design and implementation of the client’s internal control procedures, processes and systems are studied and analyzed for the audit team to be able to assess the control risk for each of the transaction-related audit objectives- occurrence, completeness, accuracy, classification, timing and posting and …show more content…
“The first function is processing of purchase orders. This includes purchase requisitions, quotations from suppliers, and purchase orders” (Arens, Elder, & Beasley, 2012, p. 683). The second function is receipt of purchased materials. This includes the receiving report. The third function is storage of materials or inventory. This includes the materials requisition form. The fourth function is processing raw materials. This includes the job cost sheet, and process cost sheets. The fifth function is storage of finished goods. This includes the sales invoice, and the sales order form. The final function is shipping finished goods. This includes the shipping form and
Smackey Dog Foods, Inc. has approached Keller CPAs to conduct an audit of the financial statements. The purpose of this summary is to describe the expectations that Keller CPAs has regarding how the audit of Smackey Dog Foods, Inc. will be conducted. Smackey Dog Foods, Inc. is a privately held corporation and is not …show more content…
The first stage that specifically applies to the audit of Smackey Dog Foods, Inc. is the planning and risk assessment stage. For Smackey, the risks can initially be assessed by obtaining understanding of Smackey’s business and its industry. More specifically, the design and implementation of the client’s internal control procedures, processes and systems are studied and analyzed for the audit team to be able to assess the control risk for each of the transaction-related audit objectives- occurrence, completeness, accuracy, classification, timing and posting and …show more content…
“The first function is processing of purchase orders. This includes purchase requisitions, quotations from suppliers, and purchase orders” (Arens, Elder, & Beasley, 2012, p. 683). The second function is receipt of purchased materials. This includes the receiving report. The third function is storage of materials or inventory. This includes the materials requisition form. The fourth function is processing raw materials. This includes the job cost sheet, and process cost sheets. The fifth function is storage of finished goods. This includes the sales invoice, and the sales order form. The final function is shipping finished goods. This includes the shipping form and