“Understanding the Clients Environment and Client’s Risks”
2 students will present
But all students will turn this in as part of homework grading.
Questions to be answered:
Question # 1 (student 1) and Question # 2 and 3 (student 2).
A little background to get you started.
1. Asher Farms’ common stock is traded on the NASDAQ national market with an aggregate market value of $677 million on October 31, 2011. 2. Asher Farms, Inc. is a fully-integrated poultry processing company engaged in the production, processing, marketing and distribution of fresh and frozen chicken products. 3. During the year ended October 31, 2011 Asher Farms processed 343.6 million chickens, or approximately 2.0 billion dressed pounds and is the 4th largest processor of dressed chickens in the United States. 4. Asher Farms has 7 hatcheries, 6 feed mills and 8 processing plants employing 1,059 salaried and 8,646 hourly employees. 5. Asher Farms uses 530 broiler farm contract operators, 173 breeder farm contract operators and 44 pullet farm contract operators. 6. Asher Farms is required to have an integrated audit of its consolidated financial statements and its internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Auditing Standards that apply:
AU Section 240 “Consideration of Fraud in a Financial Statement Audit,” AU Section 300 “Planning an Audit” and AU Section 315 “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.”
PCAOB Standards: AS8, "Audit Risk,” AS9, "Audit Planning,” and AS12, "Identifying and Assessing Risks of Material Misstatement ___________________________________________________________________________