AUDIT OF SMACKEY DOG FOODS

“The nature and extent of planning activities that are necessary depend on the size and complexity of the company, the auditor 's previous experience with the company, and changes in circumstances that occur during the audit. When developing the audit strategy and audit plan, the auditor should evaluate whether the following matters are important

Moreover, the auditor should preform test for effectiveness of internal controls. He may interview management by asking questions on the process of the transactions and operational activities. He may discuss with management the process of some transactions from beginning to end and then test it by using sample testing. Also he/she should make sure that there is proper control of activities; policies and procedures for adequate segregation of duties are met.

Auditors also evaluate the client’s recording of transactions by verifying the monetary amounts of transactions, a process called substantive tests of transactions. For example, the auditor might compare the unit selling price on a duplicate sales invoice with the approved price list as a test of the accuracy objective for sales transactions. Like the test of control in the preceding paragraph, this test satisfies the accuracy transaction-related audit objective for sales. For the sake of efficiency, auditors often perform tests of controls and substantive tests of transactions at the same time.

Stage 4: Audit Completion - At this stage, the audit team compiles a report to Smackey’s management as regards

Smackey Dog Foods, Inc. is a small, private company which specializes in manufacturing and selling natural dog foods. Their new boutique division, Best Boy Gourmet has grown significantly due to recent product demand. The company started small and is operated by sisters Sarah, Kim, and Jillian. Sarah serves as the President and General Manager. Kim is the Production Operation Manager overseeing the inventory, production, and shipment of the dog food with the help of her assistant, Henry. Jillian is in charge of Sales with a team of 12 salesmen in Illinois, Indiana, and Wisconsin. The business is based out of their hometown of Chicago.

To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.

Smackey’s Dog Food Inc is a privately owned company and does not adhere to the practices of the SEC regulations. The financial statements and accounting standards have to comply with the Generally Accepted Accounting Principle (GAAP).

Assuming that the end result is an unqualified audit report, outline the primary responsibilities of the audit firm after it issues the report in question.

Smackey Dog Foods, Inc. is a privately held corporation and not required to follow guidelines set forth by the American Institute of Certified Public Accountants. Keller CPA’s follow American Institute of Certified Public Accountants (AICPA) guidelines for private or public companies. Generally Accepted Auditing Standards (GAAS) governs audits for privately held companies.

Representatives have approached breeder’s Own Pet Foods, Inc. from Marketing Momentum Unlimited, a marketing and advertising consulting firm. The reason for the meeting was to discuss the company’s possible entry into the retail branded dog food market in the Boston market.

Breeder’s Own Pet Foods, Inc. proposes to adopt a market penetration strategy due to having identified a growth opportunity in the dog food market, for its nutritionally balanced, high quality dog food brand, Breeder’s Mix. This premium product has been sold traditionally, to the show dog kennel market, but company executives are now convinced it can be repackaged and offered as a frozen premium product, to picky pet owners via general retail distribution channels. Since the product is considered premium, it should fetch premium prices because of its ingredients and its claimed benefits to

The over-arching problem that Breeder’s Own Pet Foods has is which marketing-strategy would best serve as a vehicle for entry into the dog food retail business. Additionally, it has to select the most prominent geographic location (s) for distribution of its product. Another root problem component is how to get the supermarkets to stock and distribute this dog food since it is in the frozen category and may not appeal to traditional dog food buyers because they don’t readily associate dog food with frozen goods.

Positioned to be perceived by buyer as the only dog food that they would want to purchase for a dog that is considered part of the family

Evaluating a dog food is a simple and straight-forward procedure of comparing certain characteristics of one food with those of other types of foods that are available to feed your dog. Regardless of whatever procedure you learn and use in order to effectively evaluate your dog's needs should have enough built-in flexibility that innovative dog feeders can adapt it to best fit your own situation and further reduce their margin of error.

After careful review of each of the elements in launching this product, the following analysis can be determined. Zenith has to answer a specific series of questions in order to decide if their product of Show Circuit dog food will be a viable product. The market was in fact correctly segmented, although Zenith needs to see the shopping behavior of those willing to spend more on pet food. Marketing in a supermarket could inhibit the potential growth of the product. Because the market is already segmented and offered such a variety of dog foods, Zenith will have to market the product correctly and focus in on the benefits to be successful. Show Circuit needs to seek a position of a higher quality product in a different, more convenient location. It is important to play up how the location is a benefit rather than a detriment. This goes along with the sales program being successful. Show