...Smackey Dog Food Inc. has hired my firm and me, Keller CPAs, to complete an audit of their company and its financial statements. To continue being the successful company that they are, Sarah, Kim, and Jillian need to get better control of the company in its aspects of general business including inventory control and accounting. From the looks of things now, they are failing and headed in a downward spiral if they way things are happening continue. One of our jobs as an auditing company is to locate and address any issues and concerns with the audit and how we will proceed. Upon first glance at Smackey Dog Food, there are a couple of key issues and concerns that the company is currently experiencing. The first prominent issue that I see with the company is a serious lack of internal control starting from the very top. No one person seems to be in control of anything and the different areas of the business are being run as the sisters see fit which is not a good business practice. Sarah is trying to secure a bank loan using the accounts receivable as collateral and basing whether they will be able to pay down the loan by Jillian’s sales team projections. Problem there is that Jillian’s sales team is earning commissions on sales that they are not even getting because Jillian wants to be liked and costing the company about 11% average in profits. If the sales projections are off, they run the risk of not being able to pay back the loan like they assumed and the expansion that is desired...
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...Smackey Dog Foods, Inc. has been a very successful dog food manufacturer for the past few years, but along with their success, they have many issues surrounding their management styles and accounting techniques. These issues are a result of management’s inexperience and lack of knowledge of the proper controls related to running a business and the entire accounting aspect. Q1 Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. SOLUTION: Although Smackey Dog Foods, Inc. is not a publicly traded company the SEC has a significant influence on their audit. During the audit, Keller CPAs will still need to follow the auditing standards put in place by the SEC. AICPA principles will be followed, ensuring that the Keller CPAs are independent of the client and free of conflicts of interest when performing professional responsibilities. Q2 Discuss the essential activities involved in the initial planning of an audit. How do these all specifically relate to the Smackey Dog Food client? SOLUTION: 1. Understand the client’s business and industry. Keller CPAs can use its experience from auditing other manufacturing companies in the audit of Smackey Dog Foods, Inc. The essential part of this step is for the audit team to learn and understand as much as possible of the client’s business and industry. All related parties will be identified in this stage of the planning as well. 2. Assess client business risk. The business risk involved...
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...| Smackey Dog Foods, Inc. | Pre Audit Analysis | | Nikki Leach | 4/17/2012 | | Smackey Dog Food is a privately held company started by three sisters in Chicago, IL. Smackey manufactures a natural dog food and distributes it to pet stores, small grocery stores, kennels and veterinarians. The company has also started another line of high end single serve pre-packaged dog food they only sell through their website. Smackey is looking to expand and therefore needs to take out another loan; they currently have a loan that is secured by manufacturing equipment purchased with the money. The bank is asking for an audit of financial statements to determine if they will approve a second loan. The company wants to use receivables to secure the loan. We have been hired to conduct an audit of the financial statements. The SEC has no influence over the audit since Smackey is a private company; however, since Keller CPA is auditing the financial statements we will be following GAAP. Although the SEC has no influence we will be following any guidelines put forth by the SEC in regards to private companies to determine the financials are presented fairly. In the future if Smackey should decide to go public there are numerous steps that will need to be followed. We have assigned Peter as the audit manager and he will be assisted by Ben and Maureen. They will assess the client and plan the audit. The initial planning involves four things to be done...
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...Analysis of the Smackey Dog Foods, Inc. Audit AC555 – External Auditing Devry University Professor Dorothy Brandt Keller Graduate School of Management Introduction Smackey Dog Foods, Inc. is a private own dog food manufacturer. The company was started by three sisters in the suburbs of Chicago. Smackey’s clientele are veterinarians, local pet stores and groceries stores. Smackey is in the process of expansion, and the purchase of new equipment produced the demand for an independent audit. The company has two divisions, one produces regular, and the other, gourmet dog food. Keller CPA’s task is to analyze Smackey’s business environment, perform an audit and issue an opinion on Smackey’s financial statements to be used to secure a loan at the local bank for the purchase of additional manufacturer equipment. Analysis At the Keller CPA Firm we follow all SEC, and other agencies, rules and regulations. According to Arens, Elder and Beasley (2010), the SEC has influence on setting GAAP and other disclosures, it has authority to develop requirements to guide auditors and CPAs to better design and prepare audits, and financial statements. Not all SEC rules will be applied to Smackey Dog Foods, Inc.’s audit, because this company is not public held, but the auditors will follow SEC’s rules in regard to private companies and determine if the financial statements are fairly presented. (Arens, Elder & Beasley, 2010, p.31). Auditors accumulate evidence in order to reach a...
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...SMACKEY DOG FOODS, INC. Smackey Dog Foods, Inc., is a privately owned dog food manufacturing company, which was started by three sisters, Sarah, Kim, and Jillian, in the kitchen of their suburban Chicago home. They started by manufacturing a natural dog food with ingredients they bought from a local grocery store. These products were discovered by local pet stores and small grocery stores which also became distributors of their products. A larger facility was then needed as the demand steadily increased for their products. With this expansion the sisters were required to hire more workers and manage a growing company. Compared to their competitors’, Smackey Dog Foods, Inc. sales were on an upward growth trend. With increasing sales from the prior year, the sisters opened a boutique division and called it Best Boy Gourmet. Sarah, the president and general manager, has met with a banker to request a loan for $150,000 to expand the facilities and equipment. Their first loan for $150,000 was used to purchase industrial size food production equipment, which was also used as security for the loan. With this new request for a loan from the bank, they are now requiring an audit of the corporate financial statements of Smackey Dog Foods, Inc. before they will approve the new loan. My firm, Keller CPAs, has been hired to conduct an audit of Smackey’s financial statements and form an opinion about their financial statements, which will be used by the bank to help secure the...
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...Scenario Smackey Dog Foods Inc.—Scenario Summary Smackey Dog Foods Inc. started in the kitchen of Sarah, Kim, and Jillian’s family home in the suburbs of Chicago. The three sisters initially bought the ingredients for their natural dog food recipes from the local grocery store. They used their dogs and the neighborhood dogs as their taste testers. Their dog food products were so good, the local kennels and veterinary offices were glad to distribute the sisters' products to their customers. Local demand increased significantly. Local pet stores and small grocery stores discovered the products and became distributors. The sisters moved the expanding business into a larger facility and hired a few more workers. Although their competitors’ sales were flat or declining, Smackey Dog Food Inc.’s sales were on a vertical climb! Sales were so good last year that the sisters opened a boutique division named Best Boy Gourmet, specializing in freshly manufactured, one-serving packages meant for consumption no later than 3 days after production. They sell this product at three times the cost of their other products and by special order only through their new website. Demand is high, but waste has been an issue. Sarah is the president and general manager of the operation. Sarah has been very proactive in growing the business. She has met with her banker to discuss expanding the facilities and equipment with another $150,000 loan. Their first loan for $150,000 was secured by the industrial-size...
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...You Decide – Smackey Dog Foods Inc Smackey Dog Foods, Inc. is a familiar story in terms of small business start-ups. They started in a family kitchen, experienced explosive growth, and have had some troubles handling the accounting and business side of the business. My firm, Keller CPA’s, does not have specific experience with auditing a dog food manufacturer, but we certainly have a good bit of experience with similar small business accounting and auditing issues. The first thing to address is the SEC’s role or influence over Smackey Dog Foods. Since Smackey is private there is not a direct oversight or reporting role for the SEC. Indirectly, however, they help establish GAAP and have a role in how the books should be maintained, how the officers should conduct business, and how Keller CPA’s determine they can accept the engagement, ie their independence (sec.gov). My firm is sending Pete, Ben, and Maureen to visit the client, assess the situation, and plan the audit. To plan the audit they will have to begin developing the audit strategy, identifying problem areas and specific areas where material misstatement might occur. In this case I would identify the forecasted sales numbers as one area due to Jill’s less-than-ideal management methods. Also, they will need to analyze the lawsuit and the lawsuit of their biggest buyer to get a feel for the risk associated with those. The audit plan will also include the nature of the business and what it does, a dog food manufacturing...
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...Which Is the Better Dog Food? The commercial dog food industry has been in existence for almost one hundred and fifty years. It affords a convenience to pet owners where by they only need to scoop out dry kibble in a bowl or open a can of pet food, without any additional food or supplement, pet owners do not know what ingredients are being used in the food. Many have relied on the dog food industry to use quality products in manufacturing their food. However, to their surprise, in some cases at the demise of pets this has not been the case. In light of all the pet food recalls since 1995 and more recently in March 2007, where Menu Foods recalled more 100 brands including Iams, Eukanuba, Hill’s Science Diet, Purina Mighty Dog and many store brands including Wal-Mart. Owners have began to take a more proactive approach as to learn what ingredients are in the product, by reading and understanding the label on the packaging and making a educated choice between the slew of brands whether it be dry kibble or canned food. Some owners are scrapping commercial dog foods all together and feeding their pet a homemade diet. These owners are convinced that the dogs health fare much better on these types of diets because before the existence of commercial dog foods pets ate what people consumed in the form of leftovers or table scraps or if they were in the wild they hunted their own food that provided the pet with natural protein and nutrients found in raw meat and plants...
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...FAR EASTERN UNIVERSITY INSTITUTE OF TOURISM AND HOTEL MANAGEMENT Super Dog’s Gym & Training Center ---------------------------------------------------------------------------- A Business Plan Presented to the Faculty of the Institute of Tourism and Hotel Management Far Eastern University Nicanor Reyes Street, Sampaloc, Manila ---------------------------------------------------------------------------- In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Tourism Management ---------------------------------------------------------------------------- BASAT, JOLINA BELLE C. HUANG, YA-HUI E. MATAYA, TRIZIAMAE D. PAREDES, CHIT JANSSEN A. TELAN, DERREN KRISTELLE J. October 2015 FAR EASTERN UNIVERSITY INSTITUTE OF TOURISM AND HOTEL MANAGEMENT APPROVAL SHEET In partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE TOURISM MANAGEMENT, this business plan entitled “Super Dog’s Gym and Training Center”, prepared and submitted by JOLINA BELLE C. BASAT, YA-HUI E. HUANG, TRIZIAMAE D. MATAYA, CHIT JANSSEN A. PAREDES, and DERREN KRISTELLE J. TELAN, is hereby recommended for submission to the Oral Presentation. _____________________________________________ Adviser Approved by the Research Committee at the Oral Examination conducted on October 4, 2015 with the grade of __________ %. THE RESEARCH PANEL COMMITTEE ______________________________ Chairman ______________________________ ...
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...Tala Hughes Mrs. Martin DC English Comp. 111 20 November 2015 “Ground Zero” Paragraph Summaries 1. Berne is visiting Manhattan’s financial district for the first time to give respect to the tragedy that took place there at the World Trade Center. 2. There were people from all over the world and of all ages there to visit the site. 3. Although it may seem like you are looking at nothing, you are really looking at the absence of what used to be. 4. To a tourist, the site simply looks like a construction site. 5. Looking at the site even gives off the vibe that construction gives, of hope and curiosity. 6. Then your eyes adjust to the most striking part about the scene: the light. 7. Berne compares ground zero to a bowl of light, empty yet vast. What is missing becomes clearer as a watery glow from the light reflecting off the Hudson River covers everything. 8. Suddenly, she starts to see the tragedy, including the firefighters and the boarded windows. 9. Suddenly, the cemetery is visible, along with all of the personal belongings and headstones. 10. It takes time to see the tragedy and make sense of it all. 11. An old man near her is trying to explain to her son how he saw the site before the towers were even built. 12. It is clear many people are dissatisfied with being able to express only vague expressions. 13. Most of the people were picturing what they saw in the media, with the towers with black smoke around them...
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...Both Purina Baneful and Blue Buffalo make an excellent but as dog owners has to choice which brand. When choiring a dog food you have to choice what is going to promote my dog growth. Buffalo is the number one choice owners used food feed their dogs. Purina Baneful is on the less cheap side if you don’t a lot of money. The Purina Baneful and Blue Buffalo are too high quailed dog food products in American. The growth is the most important so you have to look into indegredints. Blue Buffalo has varies good food source such as yellow squash, yellow zucchini, yucca, zinc and zinc amino acid chelate. But unlike the Purina Baneful has chicken by products such as animal digest chicken legs sugar, salt rice flour and potassium. If you don’t watch the indegredints in the dog food you might have problems with your pet .You have to always keep that in mind when picking out the dog brands of food between Purina Baneful and Blue Buffalo. Blue Buffalo is a great dog food products because its ingredients are all natural. It’s the number one in the country dog food to used.You can take the True Blue test on-line to see if your dog food you using is a good for your pet. The Blue Buffalo don’t have article colors ,flavors or preservatives such as Purina Baneful .Blue Buffalo is the number one dog food overall for your pet think which one is best for my dog. Purina Baneful is the second in the country because of it has less natural ingredients. It don’t include veggies and fruit which the dog’s...
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...To the Manager of Pet World: I am writing to express my frustrations with a recent experience I had at your store. One week ago, I purchased Paws dog food for my pet at this location. I was surprised at what happened when I got home and used this bag of dog food. Despite being on the shelf to be sold that day, this dog food had long ago expired. To be exact, it had expired six and a half months prior to the date it was purchased. Since the bag had been on the shelf, I had assumed the food was good and acceptable to feed to my pet. I soon realized this was not the case. After feeding my dog this food, she became violently ill, vomiting for hours on end. I was forced to take her to the vet, as she was dehydrated and required medicine. Thousands of dollars later, I realized that her sickness could most definitely be attributed to the expired dog food I had unknowingly fed her. I have been a loyal customer of Pet World’s since it opened six years ago and have never experienced any issues with your store. I am both bothered and concerned by the fact that expired food was on the shelves of the store, and I am now hesitant to trust the quality of other products at your store. This issue could have affected a number of other pets as well, and I just hope that none of them became as ill as mine did. I hope to hear back from you about this unfortunate incident. Please contact me as soon as possible at (998) 867-0987 or via email at jjay@email.com. Sincerely, John Jay...
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...I. Business Metric and Key Marketing Problem Statement Zenith Pet Foods has tremendous potential to enter the household dog food market and to essentially introduce a new product, unknown to the general public. Until Show Circuit, Zenith Pet Foods frozen dog food brand, dog food cell into four categories, dry, canned, semimost, and dog treats (82). Along with this huge market potential come obstacles and problems to overcome. The key marketing problem is to prove to the frozen-food buyer of supermarkets that Show Circuit can generate sales by implementing the most effective advertising and promotional activities to reach the most profitable target market. By identifying promotional activities that will have a high reach to their target market, Show Circuit will enter the market creating brand identity. Show Circuit is creating a new product category of frozen dog food, therefore the need to generate brand awareness to the general public is essential in generating sales is the most critical aspect for Zenith Pet Foods to start making a profit. II. Alternatives Sales is initially the most important business metric for Zenith Pet Foods to focus on because by generating sales this will in turn increase the gross margin and finally after time increase EBITA. However, since Show Circuit is a new product, they can’t expect to increase EBITA without first focusing on increasing sales. As Zenith Pet Food’s marketing wizard, if I don’t increase sales then our gross margin won’t...
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...Dog Food in Turkey Summary * Dog food sales increased in value by 12% to reach TRY200 million * Main premium brands for dog food: Nestlé Purina Petcare Türkiye, Anadolu Akvaryum ve Pet Urunleri San Tic AS, Tropikal Bahçe ve Evcil Hayvan Ürünleri AS and Mars Inc * Increasing awareness of dog nutrition, positively impacts the performance and is altering the choice of dog food consumers select nowadays * Dog treats records the most vibrant performance in 2014 with 23% current value growth * Average unit price of dog food registers 1% growth in 2014 * Tropikal Bahçe ve Evcil Hayvan Ürünleri AS continued to lead dog food with a total value share of 17% * Over the forecast period, dog food value sales are set to rise at a value CAGR of 6% at constant 2014 prices, to 2020 Trends in dog food The Turkish dog food market is expected to record a 12% current value growth in 2015 compared to the figures of 2014. The main influences behind this enhanced performance are due to the increase in dog ownership, due to the rising need for companionship within urban districts. Moreover, the increase in awareness of dog health will lead to a growing demand for premium dog food. Additionally, the rising awareness about dog nutrition will increase the amount of people feeding their dogs with prepared dog food, instead of meal leftovers. In 2015, total dog food sales registered 12.4% value growth, gaining a rise of 0.6% growth, compared to the 11.8% increase recorded...
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...Smackey Dog Food Company Smackey Dog Foods, Inc is a privately held corporation specializing in natural dog food, both regular and gourmet brands. Smackey Dog is not publicly traded which is evident because they are not following many of the standards that are required through Sarbanes Oxley. Since this is a privately run corporation, they are not required to adhere to the SEC regulations, but adherence to these regulations would actually help Smackey Dog to be more efficiently run and would help them have a better handle on their operations. Although the company is not required to follow SEC regulations, the auditors are still required to follow the audit standards in place with the passing of Sarbanes Oxley. Audit planning is very important. The initial audit planning should be done in the early stages of the audit. The auditor must determine whether to accept the client. It is late in the year to accept new clients, and there are also some major issues with the way the company is being run, in spite of these challenges; Keller CPA’s has agreed to accept Smackey Dog as a client. The second stage in audit planning is to determine why the audit is needed. Since Smackey Dog is not publicly traded, there is no law that requires the company to get a yearly audit. This audit is needed because Smackey Dog is attempting to qualify for a bank loan. Sarah, the CEO of Smackey Dog has met with her banker to attempt to qualify for a $150,000 loan to expand the facilities...
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