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You Decide Project - Smackey Dog Foods, Inc.
Smackey Dog Foods, Inc. manufactures two product lines of dog food, sells their product to retail store distributors and is growing faster than their competition. They have decided to expand their facilities and purchase more equipment in order to keep up with the demand, but found themselves in need of a capital loan in order to accomplish this objective. The bank is requiring that Smackey Dog Foods, Inc. provide audited financial statements before they are willing to consider the loan. Smackey Dog Foods, Inc. presented Keller CPA's with the opportunity to take them on as a client to complete their audit, and Keller CPA's has accepted the proposal. This paper will discuss the four phases of the Smackey Dog Foods, Inc. audit and the challenges that Keller CPA's will be faced with during the audit cycle. The following audit phases will be discussed in more detail: planning 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.
Smackey Dog Foods, Inc. manufactures two product lines of dog food, sells their product to retail store distributors and is growing faster than their competition. They have decided to expand their facilities and purchase more equipment in order to keep up with the demand, but found themselves in need of a capital loan in order to accomplish this objective. The bank is requiring that Smackey Dog Foods, Inc. provide audited financial statements before they are willing to consider the loan. Smackey Dog Foods, Inc. presented Keller CPA's with the opportunity to take them on as a client to complete their audit, and Keller CPA's has accepted the proposal. This paper will discuss the four phases of the Smackey Dog Foods, Inc. audit and the challenges that Keller CPA's will be faced with during the audit cycle. The following audit phases will be discussed in more detail: planning 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.