Essay --

Q 1 Discuss how the dry has influence (if any) over the canvass of Smackey Dog Food, IncSolutionSEC has a significant influence on the inspect of Smackey Dog Food, Inc because it sets certain auditing standards that need to be adhered to while conducting and audit of any organization. One of the standards is ensuring a professional independence of auditors as they hunt down out their audit. Keller CPA would be more objective in their picture by maintaining independence in all maters and be free from dispute of interest in performing their professional engagement. Thus, although SEC does not take in direct control over privately held companies like Smackey, it, however, sets up largely accounting principles and disclosure requirements for all auditors to follow in order to interrupt fraud and misstatement and to ensure fairness to users of audited financial statements for investment purposes or finality making. Therefore, Keller CPA would be required to follow the six genera lly pass judgment auditing standards established by ASB of the AICPA with regards to field work and reporting which were established by the influence of SEC.(Arens, Alvin A., Elder, Randall J., and Beasley 2012 p. 31)Q2 Discuss the essential activities involved in the initial cooking of an audit. How do these all specifically relate to Smackey Dog Food lymph gland?Solution Keller CPA would first understand the clients industry operations and in particular how the clients rail line functions. This understanding will set the stage for assessing clients business risk, risk of significant and material misstatement of the clients financial positions and the boilers suit audit risk.The four major part of audit planning argon(i) Understanding internal control operatio... ...ble to third parties. Liability under SEC can also arise as well as encroachment of SAS 99 by not exercising professional skepticism.(Arens, Alvin A., Elder, Randall J., and Beasley. 2012. P. 115-116) REFERENCIESArens, Alvin A., Elder, Randall J., and Beasley, Mark S. (2012). Auditing and presumption Services An integrated Approach. 14th ed. Upper Saddle River Pearson HallPCAOB (Public companion Oversight Board), Auditing Standard number 9, audit planning, retrieved 1/22/14 http//pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_9.aspxAICPA (American Institute of CPAs) Section 50, Principles of Professional Conduct, retrieved 1/17/14 http//www.aicpa.org/ search/Standards/CodeofConduct/Pages/et_52.aspx