Evaluation Of An Audit For Smackey Dog Foods, Inc. Essay

1478 Words Jun 22nd, 2015 6 Pages
My auditing firm has been asked to perform an audit for Smackey Dog Foods, Inc. (Smakey Foods) because Smackey Foods needs a $150,00 loan. In order to audit the company, I will need to fully understand the concept of the company and how they record their account receivables. I will also research the entire industry. By taking this approach, I will better understand how Smackey Foods operates. Once I understand the process undertaken by Smackey Foods to conduct its activities, the next step will be to obtain a flow chart from the company showing step by step how they record their financial transaction. Once I understand the business concept, then I will discuss eleven points for this essay which will address all concerns regarding the audit. First, I will discuss the involvement of the Securities Exchange Commission (SEC) over the audit of Smackey Dog Foods, Inc.
As business has grown, the sisters have opened a boutique division—Best Boy Gourmet. This boutique division specializes in freshly manufactured, one-serving packages which are to be consumed within three (3) days of production. This product is only available by special order and they are able to sell the packages at three-times the cost of other products. Demand and sales are high but there are some significant issues like waste due to delays in production. For example, if raw or fresh ingredients are delayed, production comes to a standstill. In addition, while little inventory is sitting in the warehouse,…

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