Smackey Questions Essay examples

Words: 2274
Pages: 10
Open Document
Worksheet for You Decide

Name Cathie Reid Course Code ACC555 Grade ___/ Date_12_/12_/12_

Questions:

Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.

Solution:

The SEC does not have direct influence over the audit of Smackey Company because, Smackey is not a public held organization, they do not have assets in excess of $10 million, and they do not have over 500 stockholders; which are the requirements for public and privately held companies. The SEC does have indirect influence over the audit because all companies, whether public or private are required to comply with General Accepted Accounting Principles (GAAP) and the SEC plays a significant role in influencing these …show more content…
4. Finalization: At this point the audit team will complete and submit a report to Smackey’s management to inform them of any items that came up as a result of the audit; they should also review the work and results of the tests completed and decide what opinion to report based on the evidence uncovered (if any)

Q4: Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?

Solution:

I see sales transactions related objectives that would give rise for concern. These objectives are as follows (taken from the text):
1.Recorded transactions exist (occurrence).
2. Existing transactions are recorded (completeness)
3. Recorded transactions are correctly included in the master files and are correctly summarized (posting and summarization)
4. Recorded transactions are stated at the correct amounts (accuracy)
5. Transactions are correctly classified (classification)
6. Transactions are recorded on the correct dates (timing)
Specific internal controls that concern me are:
1.Best Boy Gourmet division has been wasteful
2.Kim overseas inventory, production and shipment of the products although she spends most of her attention with the Best Boy line
3. Henry alone prepares and approves all inventory records; Kim “takes his word for inventory levels”
4. Sales commissions are given based
Show More

Related Documents: Smackey Questions Essay examples

Smackey Dog Food Essay

answered almost every question competently and thoroughly. The only question you might have done better on is Q10 for more detail on the rules that apply.. Thank you! Worksheet for You Decide Name Thea Zental____ Course Code AC 555_____ Grade ___ Date 02/19/2012 Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC (Securities and Exchange Commission) has a great influence on the audit of Smackey Dog Foods, Inc., which…

Words 2449 - Pages 10

Essay on Dog Food

Course Code _________ Grade ___/ Date__/__/__ Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: Smackey Dog Foods is not a publicly traded company, so it’s not required to follow SEC regulations. However, the auditors are required to follow audit standards. (AICPA Code of Professional Conduct, Sarbanes-Oxley Act, and SEC rules) Therefore, SEC has great influence over the audit of Smackey Dog Foods. Inc. Q2: Discuss the essential…

Words 1248 - Pages 5

Smackey Dog Foods, Inc. by Ljubomir Essay

External Auditing (AC 555) Professor: Marie Wang Project: You Decide- Smackey Dog Foods, Inc. by LJubomir Gataric Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC assists in providing investors with reliable information upon which to make investment decision. The Securities Act of 1933 requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval. The…

Words 2722 - Pages 11