...------------------------------------------------- Smackey dog food Auditing [Date] tamucc [Company address] [Date] tamucc [Company address] Smackey Dog Food is a family owned and operated company that began as a dream of two sister’s and its meager beginnings were established in the kitchen of their home. The business has become more profitable and thus the sisters have a need to expand the business into a larger facility. There was a need to hire additional employees in order to meet the demand for the increase in Smackey Dog food orders. With the increase in sales the women decided to embark on a new product line and open a “Boutique Division that was named Best Boy Gourmet” that specialized in freshly manufactured, one-serving packages meant for consumption no later than 3 days after consumption. There is a huge demand for this product but waste is an issue. The dog food manufacturing industry requires many key figures with regards to operations of the warehouse. Depending on how large the warehouse is there are a lot of steps from the initial order from the customer until it is finally delivered to the customer. When an order is placed there is an immediate need for a lot of employees to fill an order especially if they are using an assembly line. Fork lift drivers bring the raw materials such as the fiber. The dog food depending on the type, for example if it is canned dog food or bags is placed for the employees of the assembly line to access it...
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...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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...Wild Buck is a privileged dog that is stolen from his companion. He overcomes many obstacles, and through it all, he hears the call of the wild. He sings back softly at first. But as his triumphs grow, so does Buck’s adventures. He tackles many obstacles, such as starvation, endless fights, beatings with clubs from owners. He hears the nocturnal singing, and sings softly at first. He hears them all along his travels. Buck finally finds a man that he truly loves and protects with all his being. John Thornton treats Buck kindly, but as he reflects, he has a different relationship with John than that with the Judge. Buck felt just a companion with the Judge, but with John, he feels the bonding connection between a man and his dog. During his time with John, he finds a wild wolf, and goes off camp often to adventure and be free in the wilderness. But his love for John always kept him coming back. Upon returning from killing a moose, Buck finds that the Indians have killed the dogs and his beloved John, as well as everyone else. This rages a fire in Buck and he kills the Indians. Upon returning to the wilderness, he is reunited with the wolf and his pack. He also finds and kills more of the Indians. At the end of the story Buck becomes the leader of the pack of wolves, so he sings the nocturnal song the loudest, because he is finally free. I believe all along it was his destiny to sing the call of the wild. He overcame many obstacles when other dogs didn’t have it in them. He...
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...The Scoop on Dog Poop Shameeka S. Hardison Grantham University The Scoop on Dog Poop One of the most disrespectful and unsanitary thing a dog owner can do is; allow their dog to urinate or defecate in someone else yard. It is very irritating to look out the window and see someone’s lawn being used as a dumping ground for feces or urine by their neighbor’s dog. This is an issue many people across the world are experiencing in their neighborhoods and fixing the problem is a must for many reasons. It is a matter of being respectful of one’s property, by not allowing your dog to conduct their business on someone else’s lawn. Owning any kind of pet comes with responsibility and liability. Picking up their feces and disposing of it properly is a must! According to the American Pet Products Manufacturers Association, 43.5 million households in the United States own a dog (Roberts, 2007). Imagine that out of all these households, only half of them cleaned up after their dogs. Some people are just plain rude or too lazy to pick up after their dogs. Most dogs will start to sniff around before they began to urinate or defecate on the lawn, so politely yank them by the collar and they will move on. Carrying around a doggie poop bag or a simple Wal-Mart bag is a must when walking dogs because exercise stimulates their need to go. Yes, it means picking...
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...Mikey Warfield DE Comp II Ms. Casper Wolf Reintroduction In recent years the wolf has been forced onto the endangered species act from excessive poaching and extermination. In order to revive this species we must reintroduce it to its natural habitats including but not limited to Colorado. The last wolf in Colorado was believed to have been shot in 1943; seventy years excessively far too long to stand back and do nothing. I believe that a full wolf reintroduction to Colorado is a necessity. Considering, a wolf is only as dangerous as you make it and with the proper precautions they present little to no danger to humans and cattle, it makes sense to reintegrate this species before it disappears forever. In a realistic sense they present no real threat to humans or livestock as long as they are left alone just like any other animal. They are heavily misunderstood and a community wolf awareness lesson may be necessary, but they can easily reintegrate into our society, if trigger happy ranchers can be kept in check. In many cases they can help to eliminate the overpopulation of deer and elk in recent years which have been a nuisance to farmers and homeowners throughout Colorado. In a recent study of twenty high school students all twenty said they supported wolf reintroduction in Colorado (Warfield). If their survival lacks no real negative side effects and mostly positive outcomes then we must act now before it’s too late. Many argue that wolves are...
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...The domestic dog (Canis lupus familiaris)[2][3] is a subspecies of the gray wolf (Canis lupus), a member of the Canidae family of the mammalian order Carnivora. The term "domestic dog" is generally used for both domesticated and feral varieties. The dog was the first domesticated animal[4] and has been the most widely kept working, hunting, and pet animal in human history. The word "dog" can also refer to the male of a canine species,[5] as opposed to the word "bitch" which refers to the female of the species. MtDNA evidence shows an evolutionary split between the modern dog's lineage and the modern wolf's lineage around 100,000 years ago but, as of 2013, the oldest fossil specimens genetically linked to the modern dog's lineage date to approximately 33,000–36,000 years ago.[4][6] Dogs' value to early human hunter-gatherers led to them quickly becoming ubiquitous across world cultures. Dogs perform many roles for people, such as hunting, herding, pulling loads, protection, assisting police and military, companionship, and, more recently, aiding handicapped individuals. This impact on human society has given them the nickname "man's best friend" in the Western world. In some cultures, however, dogs are also a source of meat.[7][8] In 2001, there were estimated to be 400 million dogs in the world.[9] Most breeds of dogs are at most a few hundred years old, having been artificially selected for particular morphologies and behaviors by people for specific functional roles. Through...
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...Cats and Dogs Instructor Aimee Garten February 13, 3012 Our amazing planet, Earth is home to a diverse amount of humans, insects, animals and other organism which share a common bond of directly and indirectly habitation. Americans own 73 million dogs and 90 million cats. They become best friends, soul mates, family members, and even surrogate children. Relationships with cats and dogs are some of the longest and most intimate of our lives (PBS.org 2012). The saying, “A dog is man’s best friend” may hold some truth for many, but dogs are not the only animal companion people enjoy. For many individuals, a cat is their best friend. Providing a loving home to either of these animals is a huge responsibility an owner may undertake. It’s an honor and a pleasure to possess either one. Cats and dogs are the two most popular domestic animals for companionship. Cats and dogs offer their owners different amounts of companionship and personal fulfillment. When you show them love they will unconditional return that love back. Even though cats and dogs share some of the same similarities, they are truly different in many ways. The similarities, and the differences are countless between cats and dogs, however, let’s discuss what makes them similar. First, we shall examine the similarities these two beings have in common. It’s evidently that both are of the mammal kingdom and both have hair for coating. They mutually have sharp teeth, tail, four legs, and claws. Cats and Dogs give birth...
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...One of the most endangered wild Canidaes on earth is the North American red wolf; known by the scientific name of Canis Rufus. The reasons for this are the lack of natural environment for them to roam, the lack of food due to human hunting, an intensive predator control program, and the interbreeding of the red wolf and coyotes in the wild. There is one thing that is being done to help the recovery of the species and that is the restoration program. That along with other projects could help bring back the red wolf from the brink of extinction. The red wolf is one of two wolves native to North America, the other one being the gray wolf. They get their name from the reddish tint they have in their fur mostly behind the ears and on the legs and neck. Their size is in between the coyote and the gray wolf. The average adult is around 4 feet long from the end of their tail to the tip of the nose, and 26 to 31 inches tall at shoulder height. Average weight is between 50 to 80 pounds. They tend to hunt alone or in small packs of 5 to 8 individuals; often the individuals are the pups from the breeding pair. The breeding pair or alpha male and female are likely to mate for life. The gestation period for the red wolves is 60 to 63 days, mating season is late winter and the litter size varies from 2 to 8 pups. Only having one litter a year could be seen as a problem but there is nothing that can be done to change that. Their diet consists mainly of small animals such as raccoons...
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...Descriptive Essay By Moon 11-10-2012 My Dog Named Beau Lying on my living room floor is a curled up fuzzy-ball dog named Beau. When I was a kid, my mother had a dog and he lived in a cage all his life. I had always wanted a dog as a child, and now I have found a perfect dog. He is adorable, smart, loving and his has an up lifting personality. He will never live in a cage. Beau was born in Venango, NE. He is from the Cairn Breed. His father was Sebastian, who was more handsome than King Charles, and his mom’s name was Amanda. Beau is very handsome. He has soft curly hair and a stocky body shape. He has white, light and French vanilla ice creme colored hair. He has beautiful glass brown marble eyes, a big round black clown nose, and cute little mouse-like triangular ears. He also has a cute round-shaped face. When he was 2 months old, he was so tiny and adorable, the size of a fava bean. I held him in my palm; his fur was silky and smooth, especially when he fell asleep on my lap. I often walked him outside of my apartment, and he had a curious approach to everything, smells, sounds or sights. As a puppy, he loved to play with my flip flop, even though the flip flop was bigger than he. He found a way to lift his face up so he could drag the sandal without tripping over it. When I spoke to him, his little triangle ears flipped upward and his head tilted to the side; he looked at me with a response like he knew what I was saying to him. As Beau...
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