Give an example of how each of these specifically applies to the Smackey Dog Food, Inc audit. For instance, examine the apparent internal control weaknesses and possible negative outcome of each. Solution: Chapter 6, 13 Q4: Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify? Solution: Chapter 10 Q5: You decide that you will address Smackey Dog Food, Inc.’s accounts receivables through confirmations.
In here the influence of the SEC is very obvious. Under the SOX, auditors have to be objective and independent otherwise legal sanctions can be incurred. The PCAOB also has the authority to sanction registered CPA firms for any violations of the Act. Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?
Unit SHC34 - Principles for implementing duty of care in health, social care or children’s and young people’s settings 1. Understand how duty of care contributes to safe practice 1.1Explain what it means to have a duty of care in own work role? A duty of care is a legal obligation imposed on an individual. Requiring them to set a standard of reasonable standard whilst in the working environment so that noting you may do could harm others.We can do this by carrying out daily checks and cleaning rotas to ensure that the work place inside and outside is safe and clean before the day starts. 1.2Explain how duty of care contributes to the safeguarding or protection of individuals.
They also liaise with the warehouse staff to know what goods have been supplied and by whom so that they are aware of the invoices that will be received from the suppliers. The main accounting system was setup at the point of the management buyout and to keep costs low and for the ease of installation it was decided to operate using Microsoft Excel spreadsheets instead of a more sophisticated integrated computer package. Spreadsheets are used to record all transactions. At the end of each month the spreadsheets are used to manually update the general, accounts payable and accounts receivable ledgers. These ledgers are on a tailored software package that enables the financial reports to be run.
This strategy considers the nature of the client’s business and industry, including areas where there is greater risk of significant misstatements. The auditor also considers other factors such as the number of client locations and the past effectiveness of client controls in developing a preliminary approach to the audit. The planned strategy helps the auditor determine the resources required for the engagement, including engagement staffing. The auditor must assign the appropriate staff to the engagement to meet generally accepted auditing standards and to promote audit efficiency. The first general standard states the following: The Smackey Dog Food, Inc. has many remote locations that are not properly managed by the company.
* Ensure that each supervisor has an expense report, is aware of how to fill it out, as well as claim for their additional travel expenses. * IT Department * Ensure that each one of the Shift Supervisors has the security certs needed for the training. * Review the computers that will be used for training to ensure they will be able to complete it without complications. * Shift Supervisors * Ensure that all travel arrangements are
Worksheet for You Decide Name ________ Course Code ACCT 555 Grade ___/ Date_08/25/13 Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC would have a significant influence over the audit of Smackey Dog Foods, Inc. Since my firm, Keller CPA’s, has been hired to conduct the audit of Smackey Dog Foods Inc., it can be assumed that Smackey Dog Foods is a privately held company, which means the audit is governed by AICPA and PCAOB auditing standards. The SEC, AICPA, and PCAOB all require independence during an audit. This means that an auditor must maintain independence of the mind and independence in appearance.
Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded? A. The billing department supervisor sends copies of approved sales orders to the credit department for comparison to authorized credit limits and current customer account balances. B. The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly.
Internal auditors guarantee that the internal controls are sufficient and calculate the company’s financial and information systems for accurateness. A series of audits such as financial statements, fraud, compliance, and operational can be made with the hiring of an internal auditor. The most beneficial audit for Whitfields Company would be an operational audit. Operational Audits can be done if upper-level management thinks that there is a need for operational improvements. It is a review of management and how operating procedures work.
Felisha Castoire March 18, 2012 XACC 280 Internal Controls In any business as well as accounting there is a goal to be reached. In order to reach said goal you must take certain steps to obtain that goal. Internal controls are the steps taken to on a daily basis to achieve a particular goal. These steps are what assure that things run efficiently. Each measure is taken to maintain accuracy and reliability in daily operations.