Smackey Dog Foods, Inc. manufactures two overlap lines of dog food, sells their product to retail store distributors and is growing quick than their competition. They have decided to expand their facilities and purchase more equipment in station to keep up with the demand, but found themselves in need of a capital loan in dress to accomplish this objective. The bank is requiring that Smackey Dog Foods, Inc. provide studyed financial statements onwards they are testamenting to consider the loan. Smackey Dog Foods, Inc. presented Keller CPAs with the opportunity to take them on as a thickening to complete their audit, and Keller CPAs has accepted the proposal. This paper will discuss the four phases of the Smackey Dog Foods, Inc. audit and the challenges that Keller CPAs will be faced with during the audit cycle. The following audit phases will be discussed in more detail: supply and designing an audit approach, performing tests of controls and substantive tests of transactions, performing analytical procedures and tests of details of balances and completing the audit and issuing an audit report.
During the planning and design phase, Keller CPAs must consider the address of accumulating evidence for the audit, ensure that sufficient appropriate evidence is amass to meet their professional responsibility, and identify why Smackey Dog Foods, Inc. ask the audit. Keller CPAs decision to accept this client inevitably to be made by a senior person on the audit team who is responsible for making the definitive decisions and should be decided upon early in the engagement, before incur costs that may non be recoverable. Keller CPAs has never audited a dog food manufacturer, so by accepting the job they must ensure there is not a breach of the professional rules of conduct by doing their prep on this type of industry in order to nominate a fair audit report. Keller CPAs should grow an understanding of Smackey Dog...If you want to get a full essay, order it on our website: Ordercustompaper.com
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