Smackey Dog Foods

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Smackey Dog Foods, Inc Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. The Securities and Exchange Commission has a significant influence on the audit of Smackey Dog Foods, Inc. by Keller CPAs. This influence can be detected in the audit standards as followed: In the audit of publicly listed companies including Smackey, auditors need to observe principles. Although the standards are enforceable for the audit of public companies, it can also be applied to the audit of non-public companies like Smackey Dog Foods, Inc. Independence is one of the six ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct. The other principles are 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. The SEC has power to establish rules for any CPA associated with audited financial statements submitted to the commission. 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? The following are some of the needed activities involved in the initial planning of an audit and as they applied to Smackey Dog Food, Inc. 1. Understand the

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