Also, the fact that Pete is discussing the audit with Alan causes for some skepticism. To start the audit, Pete and his team must first get an understanding of Smackey and their industry to conduct this audit. Though Keller CPA’s have never audited a dog food company, maybe they have audit companies similar to Smackey like a food manufacturer and this will at least give them some insight on what to look for. Also, they should look at the industry to have some comparison when they began to audit the financials. Assessing Smackey’s business risk will be the next step and the issue they are having with returned dog food could really threaten their risk factor.
The negative confirmation asks the customer to respond only if they disagree with the balance determined by the client. The positive confirmation asks the debtors to confirm directly to the auditors whether the balance of the accounts receivable from the debtors is correct or not. The positive confirmation would be used to get confirmations from third parties to verify Smackey’s accounts receivables. We will also examine the sales invoices and compare them to shipping documents to make sure that what has been invoice is what it was
Worksheet for You Decide Name: Jennifer Carr Course Code ACC555 Grade ___/ Date 12/16/2012 Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The Securities and Exchange Commission (SEC) is an agency of the federal government and was established to help investors obtain reliable information upon which they could make informed investment decisions. Under the Securities Act of 1933 and The Securities Exchange Act of 1934, all companies filing registration statements and subsequent reports, must also file audited financial statements. Since the only companies filing statements are those that seek to issue new securities to the public, privately held companies are not held to the audited financial statement requirement setup by the SEC (Arens, Alvin, Elder, and Beasley, 2010, p. 31). Smackey Dog Foods is a privately held company and is not required by the SEC to file audited financial statements as mentioned above.
If Dawn, Lind, and Mike were to select this type of entity they would each pay another tax on the corporation’s distribution of corporate earnings and profits when dispersed as dividends. However, contrary to C corporations, an S corporation is not a separate taxable entity for most federal and state income tax purposes. Dawn, Lind, and Mike will need to determine the best entity type that will
Assessing Materiality and Risk ACC491 August 26, 2013 Assessing Materiality and Risk Simulation Why do certain accounts have to be audited 100%? Accounts that are especially susceptible to misstatement due to error or fraud should be verified 100% (Apollo Group, 2004). These include accounts like cash, cash equivalents, intangibles, lines of credit, and notes payable. Because auditors are required to plan the audit to assess the risk of material fraud, highly susceptible accounts are verified 100% to avoid excessive sampling in order to gain an acceptable risk level. Several factors including number and frequency of transactions increase the risk of error.
When the invoice is submitted the e-mail database must have enough memory to support the constant e-mails. If this is a credit sale, the invoicing department must forward the approval, along with the report to the compliance/accounting department. The accounting department has more access; because each item needs to be verified by them and they also need to verify the credit report is viable. Once they are finishing testing the invoice, they need to comment on the database that the certain individual tested this invoice and it is compliant or noncompliant. There should also be a brief explanation explaining why the transaction is what they deem it
Scenario 1: Cost Club Memo Lynetta Stonewall HRM546 December 22, 2014 Denise Brown Scenario 1: Cost Club Memo MEMORANDUM TO: Pat Brown FROM: Lynetta Stonewall DATE: December 22, 2014 SUBJECT: HR Concerns – Dealing with the Problems This memo is to address the five email messages concerning various human resources related problems included in the emails. Each question will be answered and will include references to the legal principles or statutes as it related to the question. Message 1: Discharges at the Anderson Cost Club store In response to the general manager (GM) firing two employees without providing a reason and the possibility of a wrongful discharge lawsuit, the state of Georgia is an at-will state. Under
Q1 After reading the essay, What image do you carry away of taxidermy? Q2 Why do you think Susan Orlean chose to attend a taxidermists’ championship ? A1 In the essay “Lifelike”, Orlean introduced taxidermy by writing the experience of 2003 World Taxidermy Championships. The author delivered her experience from the point of view of someone who does not know about taxidermy at all. The way of her writing does work well to approach the readers who don’t know much about mounting animals because I also changed my view point to look at the field after I read the essay.
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Fort Worth, TX: Harcourt College Publishers; 2002 Week 2 Discussion The first public policy I have chosen to expound upon is the duty of confidentiality professional counselors are to adhere to and the affects a Texas Supreme Court ruling in 2006 has on professional counselors licensed in the State of Texas. The second public policy I have chosen to review deals with counseling the disabled its implications on the counseling profession. Confidentiality is a must if clients are going to continually confide in professional counselors. Breach it just once, and the counselor not only betrays the client, but the core values espoused in the ACA’s Code of Ethics. The integrity of the counseling process is important.