Smackey Dog Foods

1722 Words7 Pages
My auditing firm, Keller CPAs, has been retained by Smackey Dog Foods, Inc to perform a yearend audit of their company. Since I have never performed an audit on a dog food company before, my first step is to research the industry so that I can be aware of the practices within the industry and also of the risk factors to look out for. This allows me to be able to know what areas to be aware of as possible risky scenarios and to adequately plan the audit in order to best catch any material misrepresentations based on experiences of others within the industry. The Securities and Exchange Commission (SEC) has significant influence over Smackey Dog Foods, Inc. even though it is a privately held company. Requirements similar to those of a publicly held company can be applied to a privately held company in instances regarding to securities, such as those held and being sought by Smackey Dog Foods Inc. Another recommendation would be following the rules of professional conduct set in place by the American Institute of Certified Public Accountants (AICPA), which include objectivity and independence, the public interest, integrity, due care, and scope and nature of services. Audit team members should maintain objectivity, remain free from conflict of interest in discharging professional responsibilities and be independent in both fact and appearance while discharging their duties as an auditor The first step in each audit would be to understand the industry that is being audited. The members of the auditing team performing the audit of Smackey Dog Foods, Inc would need to research the industry and capitalize on any food manufacturing audits that they had performed previously and use their experience towards that of this dog food manufacturing company. Next, the firm would assess the client’s business risk. In this specific situation, the auditor would look at the ability

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