Smackey Dog Foods, Inc. by Ljubomir
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 Securities Exchange Act of 1934 provides additional protection by requiring public companies and others to file detailed annual reports with the commission. Smackey Dog Food, need to file next forms:
Form S-1. “S” forms apply to the Securities Act of 1933 and must be completed and registered with the SEC when a company plans to issue new securities to the public. The S-1 form is the general form used when there is no specifically prescribed form.
Form 10-Q. This report must be filed quarterly for all publicly held companies. It contains certain financial information and requires timely auditor reviews of the financial statements before filing with the commission.
Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?
Solution:
Audit Planning consist of the following:
1. The auditor decides whether to accept a new client or continue serving an existing one. This determination is typically made by an experienced auditor who is in a position to make a important decisions. The auditor wants to make this decision early, before incurring any significant cost that cannot be recovered. With Smackey Dog Food, Keller CPA had time to devote to the audit and therefore accepted the job.
2. The auditor identifies why the client wants or needs an audit. This information is likely to affect the remaining parts of the planning process.
3. To avoid misunderstandings, the auditor obtains an
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 Securities Exchange Act of 1934 provides additional protection by requiring public companies and others to file detailed annual reports with the commission. Smackey Dog Food, need to file next forms:
Form S-1. “S” forms apply to the Securities Act of 1933 and must be completed and registered with the SEC when a company plans to issue new securities to the public. The S-1 form is the general form used when there is no specifically prescribed form.
Form 10-Q. This report must be filed quarterly for all publicly held companies. It contains certain financial information and requires timely auditor reviews of the financial statements before filing with the commission.
Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?
Solution:
Audit Planning consist of the following:
1. The auditor decides whether to accept a new client or continue serving an existing one. This determination is typically made by an experienced auditor who is in a position to make a important decisions. The auditor wants to make this decision early, before incurring any significant cost that cannot be recovered. With Smackey Dog Food, Keller CPA had time to devote to the audit and therefore accepted the job.
2. The auditor identifies why the client wants or needs an audit. This information is likely to affect the remaining parts of the planning process.
3. To avoid misunderstandings, the auditor obtains an