Smackey Dog Food
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 Professional Conduct are independence, responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services. More specifically, audit team members are required to be objective and independent with regard to the audit by maintaining objectivity and being free of conflicts of interest in discharging professional responsibilities and by being independent in fact and appearance when providing auditing and other attestation services. Through this one can see how influential the SEC is. Under the Sarbanes-Oxley Act of 2002, auditors have to be objective and independent otherwise legal sanctions can be incurred.
Even though the above mentioned standards are imposed for audits of public companies, they can also be applied to the audit of a non public company like 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?
Solution:
First the audit team needs to understand the client’s business and industry. It can be profitable for the audit firm to have experience in having audited other food manufacturer in preparing and performing the audit for Smackey. So far, members of the
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 Professional Conduct are independence, responsibilities, the public interest, integrity, objectivity and independence, due care, and scope and nature of services. More specifically, audit team members are required to be objective and independent with regard to the audit by maintaining objectivity and being free of conflicts of interest in discharging professional responsibilities and by being independent in fact and appearance when providing auditing and other attestation services. Through this one can see how influential the SEC is. Under the Sarbanes-Oxley Act of 2002, auditors have to be objective and independent otherwise legal sanctions can be incurred.
Even though the above mentioned standards are imposed for audits of public companies, they can also be applied to the audit of a non public company like 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?
Solution:
First the audit team needs to understand the client’s business and industry. It can be profitable for the audit firm to have experience in having audited other food manufacturer in preparing and performing the audit for Smackey. So far, members of the