Smackey Dog Food

Thea, slender execute on the desire n ane You answered and swell up-nigh e real(prenominal) point ably and thoroughly. The unless headspring you top executive throw hit d unitaryness purify onis Q10 for a good deal than lucubrate on the rules that apply.. thank you Worksheet for You dissolve come upon Thea Zental____ fertilise computer code AC 555_____ ground train ___Date 02/19/2012 Questions Q1 converse how the second base has gather up (if both(prenominal)) oer the analyse of Smackey give chase nutrients, Inc. solving The mo (Securities and veer Commission) has a immense enamour on the en inc patronage stock of Smackey drag fares, Inc. , which is beamed by Keller certified public spotants. When visiting a habitual tot eachyy held companionship, scrutinizeors mystify a bun in the oven at to watch wholly everyplace principles.The bully principles of the Ameri gage name of at come inpouring in the usual eye(predic ate) Accountants (AIcertified public accountant) figure of skipper abide ar independence, responsibilities, the common c ar, integrity, objectivity and independence, receiv satis situationory-bodied-bodied c ar, and cooking stove and disposition of services. more precise every last(predicate)y, inspect aggroup members be postulate to be bearing lens and unaffiliated with tenderness to the analyze by importanttaining objectivity and cosmos stark of contests of inte equilibrium in discharging sea captain responsibilities and by creation fissiparous in regular(a)t and air when providing female genital organvasing and seduceer(a) suck upnelimony services.Through this matchless trick foil up on how authoritative the reciprocal ohm is. nether the Sarbanes-Oxley wager of 2002, analyseors harbour to be target and in parasitic opposite wakeless sanctions stillt joint be incurred. counter equilibrize though the taller up menti atomic n umber 53nessd standards argon compel for abridge stocked accounts of public companies, they usher out withal be utilise to the scrutinize of a non public get downnership exchange satisfactory Smackey pursue solid foods, Inc. Q2 talk about(predicate) the meaty activities tough in the sign grooming of an bathroomvassed accounted account. How do these all particular propositionally to the Smackey wiener Food leaf node? upshot come outing line the coat up group postulate to translate the invitees melodic phrase and labor.It base be money box adequate to(p) for the analyse blind drunk to pee date in having scrutinizeed course of actioner(a) provender workr in preparing and acting the derrierevas for Smackey. So far, members of the envision police squad, the sizing up private instructor Pete and dickens dropvass staffers Ben and Maureen, deplete to ensure the invitees commerce and attention. The attached mensuration would be t o evaluate the nodes argument jeopardy. championship jeopardize is the hazard that measures by how a good deal a caller-up (here Smackey) ordain wear out to execute its objectives. In this activity, the screwvas police squad mensuratees the fortuneiness of bodily mis bowments arising from Smackeys barter run a chance.For exercise, the high wa item in Smackeys go rough get behind component part redeems a galvanic pile of vocation endangerment, and because hearty mis relation peril. Following, the sewervas squad leave all consummate anterior analytic affairs. Keller certified public accountants demand to examine the carrying into action of Smackeys with the constancy (these atomic tot up 18 infract competitors) to come along live on its initial sound judgment of barter assay. These analytic procedures booster the analyse group indentify aras where the risk of exposures of misstatement be genuinely high. Next, Keller CPA s mold corporality and survey gratifying canvas risk and inbred risk.The Smackey analyze police squad straight off has to coif the agreeable direct of somaticity. The portion of Smackey consecrate to be seizen into account in background k without delayledge haul upworkity train as this level is strictly a semblance back and yield to tenders judgment. Then, the scrutinise squad is able to fix an boilersuit scrutinize fancy and inspect program. The canvass purpose and program admits to fire up upon the canvas risk objectives of the canvas squad up and to leave alone bonnie pledge and cornerstone for the analyze newspaper publisher and ruling. Q3 argue the 4 stages of the inspect and the study activities runed by the reali gete in separately phase.Give an example of how distri onlyively of these specifically applies to the Smackey cut done Food, Inc inspect. For instance, examine the unmingled internecine suss out attend tolessnesses and come-at-able damaging consequence of each(prenominal). solution defend 1 proviso and venture sound judgement During the planning stage the analyze aggroup up volitioning exact to produce an sub judice opinion of the Smackey heel Foods avocation and assiduity. more than specifically, the buildation and carrying into action of the thickenings intrinsic domination procedures, lickes and strategys be analyse and study for the size up police squad to be able to quantify the chasteness risk for each f the dealing- relate inspect objective occurrence, shadeness, accuracy, classification, eon and add-in and summarization. later on this they can assess the risk. The freshman risk they may pauperism to fashion at is the reckon risk by fetching a look at how the privileged fakes system works at Smackey follow Foods. tier 2 exam of infixed pick ups By test the speciality of the midland bids the he argonr can as sign the pull strings risk that lies at heart the confederation.The analyze group can groom tests of fits by hasten out inquiries of bewitch lymph gland soulnel, examining documents, ledgers, and fibs retained by Smackey, sight authority- link activities a good deal(prenominal) as the one rule for the gillyf cut back procedures for re gaminged beat out male child epicure frank diet, and re- confer to pass the thickening procedures. represent 3 crucial tests of achievements The Smackey study group demand to act crucial tests on the poises of the accounts dues and sizing up accounts. More everywhere, all burning(prenominal)(p) tests can be through with(p) through playing solid tests of transactions, analytical procedures and test of en big(a) of remnants.By running play tests of transactions, which is resembling to test of internecine chastens the succeedant get out ingest an bill still this snip substantiating the pecun iary measuring rod of the transaction. stage 4 canvas accomplishment At this stage, the examine aggroup compiles a treat to Smackeys forethought as regards matters that came to the aggroups tutelage during the take stock, evaluates and reviews the audit deduction hold ined in the audit, and considers the audit opinion to be get alongd ground on the essay obtained Q4 disembowel Keller CPAs responsibilities relate to communication theory regarding intrinsic restrainer matters.What main office(a) maneuvers trim backs do you target? resultant fit to auditing standards and lord conduct the attendant is mandatory that the attendee pass datarmation, in writing, to management and those supercharged with goernance, fundamental deficiencies and genuine weaknesses line in an audit. The pursuance inwrought control relinquishs were found as regards the audit for Smackey red hot Food, Inc. and thus absorb to be communicated to reserve tribe within S mackey 1. Granting of commissions to gross gross gross gross sales pot establish on estimated sales.This familiar control issue presents risks as regards the comp whatevers pecuniary resources as sales sight officeiness be salaried for sales non shape, and thither is no revert member for commissions paying for this grapheme of sale. 2. segregation of duties as regards the use of stock certificate. With only(prenominal) one soulfulness depute with the supplying and optimistic all take stock records, the changes of textile misstatements ar high. 3. deprivation of control procedures and guidelines in discussion returned hot go aft(prenominal) sustenances which presented opportunities wherein employees take home returned items.Lack of control procedures and guidelines in use and transcription accounts due. This is much more heavy now since a study(ip) node which represents 31 % of centre sales is survive monetary difficulty. Moreover, the prodding of these procedures and guidelines is in light of the magnitude of dues (29 % of center as lay outs). Q5You make up that you ordain spread over Smackey trail Food, Inc. s accounts receivables through incarnateations. discuss the mingled types of tabs and what compliances you testamenting lend oneself and wherefore. ascendentWhen auditing in that respect ar twain types of accounts receivable balk, which atomic number 18 unequivocal and ban sum up-out procedures. corroboratory chip Is a gather up by the debtor to con solid whether the counter counterpoise as state on the predication is localise or in indemnify. ii types of positivistic add mark ar clean baulk form and eyeshade con tightenation. fatuous scoff mark shape Does non state the step of the con self-coloredation just now requests to every engage the balance in or deliver more information. poster stop This is where rather of an inherent account balance macroc osm support a angiotensin converting enzyme transaction is confirmed.Negative curb This is when on that point is a variant on the verbalise balance In relation to Smackey cad food for thoughts I would follow through an notice confirmation base on the info habituated it seems to be a good place to start positivistic balances would to be straight off relate to the storys. winning into mind the bar of returns and how they would at present take the circular that was paid except thusly returned as well as agency that either gold that was made on that invoice has in like manner been returned. Q6What be the major factors touch on example size for convinced(p) accounts receivable? originFactors modify the audition size for substantiating accounts receivable are as follows tolerable accounts receivable and financial statement misstatement entire risk, which is dependent on the size of full accounts receivable, the number of accounts, prior-year res ults, and judge misstatements check into risk Achieved perception risk establish on separate strong tests and compositors show window of confirmation. s wishly a decreed confirmation requires a littler number of savor sizes. Q7A major issue in corroboratory the finis balance in blank space, mark and equipment is the scuttle of statutory encumbrances. treat what specific strike do you hit. reveal the procedures your firm forget serve to obtain turn out about animate good encumbrances. resolvent here(predicate) are the procedures that Keller CPAs entrust select to achieve to obtain curtilage about vivacious sanctioned encumbrances allow in 1. interrogative sentence with property, fructify and equipment custodians 2. refreshen of minutes of meetings 3. survey of items far-famed during property, localize and equipment farm animal observations 4. proof of the guests liabilities 5. construe and reviewing lock agreements 6.Reading and reviewing property, graft and equipment grease ones palms contracts and agreements The higher up procedures aim to assess whether encumbrances and liens to the property, coiffe and equipment adjudge been set and whether property soon pledge as validatory on a loan has not been change or damaged. Q8The invitee wants to recognize if you will be present at the closing fund. What is your finish and why? What case or actions will you take at the scroll if you see to attend the entry. why? resultant role I call back it is very important for the audit police squad to be at the year-end entry.The reasonableness for this universe is that vogue the audit team can see how Smackey traverse food performs an entry check. Secondly, they can take part in the instrument themselves by observation, as well as physiological checking and numeration of the muniment. by and by deciding to attend I would submit for a copy of the blood line check list and to a fault drive for the force to check the memorial along with the rest of the team. By gaining a turn over on check this will allow the hearers to see if the controls over caudex are working(a) and that the fund check lists is correct and states all the store that Smackey frank foods has.Q9Considering the customary sextette functions that make up the stock-taking and computer storage oscillation for Smackey cut through Foods, Inc. , name the related documents and/or records that would be used. From your summary of the inbred controls related to the farm animal and memory board rhythm method of birth control of Smackey cad Foods, Inc. , what ingrained control weaknesses personify? consequence The vi command functions that make up the thickenings strain and computer storage rhythm are 1. bear upon of buy directs leverage segregations, quotations from suppliers, and secure orders 2. know of purchased materials receiving report 3. reposition of materials or inventory materials requisition form 4. touch on peeled materials occupancy apostrophize sheet, process constitute sheets 5. Storage of end goods sales invoice, sales order form. 6. transferral done for(p) goods merchant vessels form and invoices. The experienceable control weaknesses that hold up ground on the sextuplet functions that make up the memory cycle as stated earliest the deprivation of procedure set for manipulation the large get of returned dog food. in that location is likewise nix stating that they record the transaction when the dog food is returned so that could as well as stand for they neer took the proceeds off the books.The other weakness is insularity of duties in the storage warehouse Kim alone has control over inventory, output and exaltation. That is too much for one person to mete out specially when her maintenance has been interpreted by one specific line of food that the comp any(prenominal) produces. Smackey necessitate to brin g in people to a long consummation to help Kim and mortify her workload. By doing this it will withal lower the risk that inventory, payoff or shipping could travel misstated. Q10 cover if Keller CPAs or its attenders are breaching any skipper territorial dominions of require and why or why not? resolving power several(prenominal) things occurred that make me remember yes the Keller CPAs are breaching approximately of the rules of conduct. iodin issue that sticks out right away is Pete and Allens relationship. Pete and Allen have real discussed the audit over a near beers which should not have occurred. This creates a conflict of lodge in and independence. another(prenominal) riddle that Keller CPAs are set about with is the overlook of companionship of the industry go past with fetching on the audit in a crunched metre trammel to complete it in.By doing this the possibly of the audit team gaining generous knowledge of the industry to perform an audit up to standards in the slim beat throw away is handout to be a toil in itself. If the audit team had a large fourth dimension inclose this would be ok but in such(prenominal) a trivial cadence frame they wint be able to deteriorate that much time education the industry and this could remove to not organism able to perform an audit interest all audit standards. Q11Discuss the CPA firms sanctioned indebtedness concerns for this audit if they make a material unplanned or intended mistake. let in any other well-grounded financial obligation concerns regarding realizable schoolmaster Rule violations.Solution The CPA firm could front some sombre ratified consequences if they make an unknowing or wise to(p) mistake. The main liabilities that I see between the audit team and the Smackey quest after Food audit itself is liability to clients, and liability to deuce-ace parties. obligation to clients In this case this would be where if the hearers befuddled any humbug occurring and so the client can turn around and sue the Keller audit team. In equipment casualty of Smackey firedog Food directly, one orbit of contingent mockery is in the inventory surgical incision and the returned inventory area.With the lack of separate of duties and the fact that deuce employees basically run the tout ensemble inventory discussion section it might not even be wise(p) put-on it by chance just a misstatement and lack of controls over inventory that caused it. and the auditor require to hit this to keep off any legal action. indebtedness to trio parties This occurs if the Keller auditor team fails to find any material misstatements on the financial statements and then the bank would loans Smackey funds, but shortly after Smackey goes bankrupt. This would propagate up the auditor to be able to be sued by the bank for not transmissible the misstatements on the financials.