...------------------------------------------------- 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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...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. While 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 3 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, food production equipment...
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...Kim handled the production side of the company, while Jillian oversaw the sales side (Jillian did not understand accounting very well either). Kim also has an assistant named Henry who is heavily involved with the production and shipping of all the products for Smackey Dog Foods. In fact, he is involved in almost every facet of the company. Now, let’s look at some of the current activities each key person is involved in. Sarah is currently working on getting a second loan of $150,000 from her bank to expand her facility and get more equipment. They secured the first loan with their food production equipment that they purchased with the loan they got. As far as Kim goes, she has had her hands full with the new line of Best Boy Gourmet dog food and has not had much time to manage the rest of the production. The biggest issue she is handling is that raw materials are hard to get, especially when the winter months are approaching. If they are unable to get the material they need they have to stop production all together, which leads to waste (and they have had a lot of it lately). Henry has only one other warehouse employee to assist him, and has been having a hard time restocking all the returned dog food in a timely fashion . This significant influence will be observed in the auditing standards that have to be followed by Keller CPAs in this audit. The six ethical principles of the American Institute of Certified Public Accountants...
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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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...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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...Analysis: * Company; Enthaice restaurant is the food establishment start up Thai restaurant in NYC. It will be located in Upper East Side, Manhattan, and NYC area. It will serve authentic traditional Thai food, providing the best experience at a reasonable price and great environment. Enthaice is the name which played by word from “entice” which refer to attractive surrounding or arousing hope and desire. The name was create for a strong brand recognition and set the restaurant apart from other competitive restaurants around the areas Enthaice is a convenient restaurant on third Avenue corner of 90th St. The restaurant is serving an authentic Thai food, wine, and beer. It will offer a modern décor and electric light in the relax environment. It will be a small warm Thai place around 30 seats. The dining room will decorate by black panel and white letter tile the other side and the wood panel in the middle. The room will be romantic set up in the dark light with candle and electric light color that can change different colors every day. Enthaice’s concept is simple and warmed with care. It will provide the perfect place to enjoy a Thai cuisine. It will offer delivery, catering, and private party. - Consumers: Target Audiences * people between age of 25-45 * Health conscious consumers who are seeking healthy dishes * Adventurous consumers who enjoy trying new foods * Consumers who enjoys Asian foods and rice dishes * Office workers and local residents ...
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...barriers fell, the CEO of Nestle Barbeck-Latmathe seized the opportunity and decided it’s the right time for Nestle to expand geographically into the developed and emerging markets such as those in Eastern Europe, India and Asia. By doing this, Barbeck drove Nestle’s performance dramatically, taking into consideration the massive number of potential customers in these regions and the enlargement in Nestle’s customer’s base. In the 1990’s; Nestle managed its environment by acquiring other companies. The companies which Neslte acquired at that time included U.S. food companies Carnation, Buitoni Pasta, Ralston Purina, Dreyer’s ice cream and Chef America, the British chocolate maker Rowntree, the French bottled water company Perrier, and the Mexican food maker Ortega. It is noticeable that Neslte regards acquisitions and efforts at diversification as logical ways to supplement their business. Nestle only acquires food making companies, the business it has special knowledge and expertise in. After all, Barbeck’s intentions were to customize these products to suit the tastes of customers in different countries around the world as he was eager to enter other markets. Later, Nestle managed the environment by increasing operating efficiencies. Barbeck made many decisions to achieve this and reduce the cost of managing global operations. These decisions included cutting the work force by 20%, closing 150 factories, designing a new streamlined operating structure and using advanced...
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...Why are so many Americans drawn to fast food? Do they realize what goes on behind the scenes? The fast food industry operates by assembly lines. This means cheap labor because the workers specialize in one skill and are classified as unskilled labor. So, our fast food is cheap and we eat it because it's cheap, it fills us up and we have more money in our pockets to spend on other things. But, is this the way it should be? Fast food is the food of choice for many people because engineers have skewed it to be cheap only to make healthy food become more expensive. In my opinion, organic foods are what we should be putting in our bodies. But the problem is these foods are very expensive. My solution is better regulation of the fast food industry with stricter laws for hiring and producing quality foods. Unfortunately, it's not just the fast food industry that is ruining Americans health. The meat industry needs better laws and regulations as well. The average person eats 200 lbs of meat per year but if they knew how the animals are treated and what they're being fed, I believe they would reconsider what they're eating. Chickens are being fed antibiotics to make them grow faster and fatter. The slaughtering conditions are many times horrendous with workers treating the animals with no respect and abusing the animals. The reasons for much of this mistreatment is due to the fact that the workers themselves were unhappy with the way they were being treated and would get...
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...this on many issues; I do not believe that my stance on off shore drilling is an issue of stereotyping. I have reassured my stance by reading and researching this stance. As stated in a USA Today article (Jervis, Welch, & Wolf, 7/14), “When oil is brought up from beneath the ocean floor, other things are, too. Chemicals and toxic substances such as mercury and lead can be discharged back into the ocean”. The oil and chemicals are harming sea mammals and the water they live in. The other problem off shore drilling is the chance of oil spills. In April 2010, the BP oil company encountered an oil spill in the Gulf that lasted for about 3 months. Chemicals from offshore drilling combined with oil from spills have had an effect on the food we eat. Sea food lovers are seeing the effects in the pocket books;...
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...TABLE OF CONTENTS 1)1.0 Executive Summary…………………………………………………… Page 3 2)2.0 Situation Analysis……………………………………………………… Page 4 2.1 Company Analysis…………………………………………………….. Page 4-7 2.2 Macro-environmental PEST analysis ………………………………… Page 8-11 2.3 Market Analysis……………………………………………………… Page12-13 2.4 Competitor Analysis………………………………………………….. Page 14-17 2.5 SWOT Analysis……………………………………………………… Page 18-20 3) 3.0 Market Targeting and Positioning……………………………………… Page21 3.1Target Market…………………………………………………………… Page21-22 3.2 Product Positioning……………………………………………………… Page 23-24 4) 4.0 Marketing Strategy……………………………………………………… Page25 4.1 Product…………………………………………………………………. Page25-29 4.2 Price…………………………………………………………………… Page30-33 4.3 Promotion……………………………………………………………… Page34-38 4.4 Distribution……………………………………………………………. Page39-42 5) 5.0 Financial…………………………………………………………………… Page43-46 6) 6.0 Control……………………………………………………………………… Page47-51 7) References……………………………………………………………………...... Page 52 1. Executive Summary First of all, we decided to choice HupSeng as our title of marketing plan. HupSeng is a well know brand in Malaysia. Besides, there have several type of biscuits brand in Melaka, Malaysia such as Julie’s, Oriental, Munchy’s and so on. All of these...
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