COURSE PROJECT 466

ACCT446 Course Project Deliverable 2

Scenario Summary IS LOCATED IN THE WORD DOCUMENT ATTCHED TO THIS REQUEST.

Maureen, Audit Staffer

Maureen has 5 years of prior experience as an auditor. She has a tendency to over audit accounts and needs supervision in this regard. Last year, she was responsible for catching a significant defalcation in the books of another client, resulting in a federal investigation and incarceration of the clients CFO and a board member.

To complete this deliverable, please answer the following regarding the aforementioned case:

1. Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.
2. Discuss the essential activities involved in the initial planning of an audit. How do these all specifically apply to the Smackey Dog Food client?
3. Discuss the four stages of the audit and the major activities performed by the auditor in each phase. Give an example of how each of these specifically applies to the Smackey Dog Food, Inc. audit. For instance, examine the apparent internal control weaknesses and possible negative outcome of each.
4. Describe Keller CPA’s responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?
5. You decide that you will address Smackey Dog Food, Inc.’s accounts receivables through confirmations. Discuss the various types of confirmations, and what forms you will implement, and why?
6. What are the major factors affecting sample size for confirming accounts receivable?
7. A major issue in verifying the ending balance in property, plant, and equipment is the possibility of legal encumbrances. Discuss what specific concern you have. Describe the procedures your firm will perform to obtain evidence about existing legal encumbrances.
8. The client wants to know if you will be present at the year-end inventory. What is your decision and why? What role or actions will you take at the inventory if you decide to attend the inventory. Why?
9. Considering the general six functions that make up the inventory and warehousing cycle for Smackey Dog Foods, Inc., identify the related documents and/or records that would be used. From your analysis of the internal controls related to the inventory and warehousing cycle of Smackey Dog Foods, Inc., what internal control weaknesses exist?
10. Discuss if Keller CPAs or its auditors are breaching any Professional Rules of Conduct. Why or why not?

Rubric

LMA-ACCT444/6 Course Project 2 MAY24

LMA-ACCT444/6 Course Project 2 MAY24

Criteria

Ratings

Pts

This criterion is linked to a Learning OutcomeStep 1 – Influence of the SEC

6 to >5.0 ptsExcellentThe student is fully able to discuss the influence the SEC holds over the audit of the company, and fully discusses the impact of this influence.

5 to >4.0 ptsGoodThe student is mostly able to discuss the influence the SEC holds over the audit of the company, and generally discusses the impact of this influence.

4 to >3.0 ptsFairThe student is mostly able to discuss the influence the SEC holds over the audit of the company; however key limitations or omissions are noted. In addition, the student, discusses the impact of SEC influence, with limitations noted.

3 to >2.0 ptsPoorThe student is not able to discuss the influence the SEC holds over the audit of the company. In addition, the student does not discuss the impact of such influence.

2 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

6 pts

This criterion is linked to a Learning OutcomeSteps 2 & 3 – Audit Planning

10 to >8.0 ptsExcellentThe student thoroughly discusses the initial steps in planning the audit, and also fully discusses the four steps involved in audit planning. In addition, the student discusses how these elements pertain to the company.

8 to >7.0 ptsGoodThe student mostly discusses the initial steps in planning the audit, and also fully discusses the four steps involved in audit planning. In addition, the student generally discusses how these elements pertain to the company.

7 to >6.0 ptsFairThe student mostly discusses the initial steps in planning the audit, and also fully discusses the four steps involved in audit planning; however, key limitations or omissions are noted. In addition, the student generally discusses how these elements pertain to the company; however, some key elements may not be discussed.

6 to >5.0 ptsPoorThe student is not able to discuss the initial steps in planning the audit, and cannot fully discuss the four steps involved in audit planning. In addition, the student does not discuss how these elements pertain to the company.

5 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

10 pts

This criterion is linked to a Learning OutcomeStep 4 – Internal Controls

6 to >5.0 ptsExcellentThe student thoroughly the internal control issues facing the company.

5 to >4.0 ptsGoodThe student generally the internal control issues facing the company.

4 to >3.0 ptsFairThe student generally the internal control issues facing the company; however, some key issues are not discussed.

3 to >2.0 ptsPoorThe student isn’t able to discuss the internal control issues facing the company in a meaningful way.

2 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

6 pts

This criterion is linked to a Learning OutcomeSteps 5 & 6 – Accounts Receivable

10 to >8.0 ptsExcellentThe student thoroughly discusses the steps for confirming receivables, and the factors affecting the confirmation’s sample size.

8 to >7.0 ptsGoodThe student mostly discusses the steps for confirming receivables, and the factors affecting the confirmation’s sample size.

7 to >6.0 ptsFairThe student generally discusses the steps for confirming receivables, and the factors affecting the confirmation’s sample size; however, key points are missing in the analysis.

6 to >5.0 ptsPoorThe student is not able to discuss the steps for confirming receivables, nor the factors affecting the confirmation’s sample size.

5 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

10 pts

This criterion is linked to a Learning OutcomeSteps 7 – Plant Assets

7 to >6.0 ptsExcellentThe student thoroughly discusses the steps for verifying property, plant and equipment, including the steps that will be followed to uncover legal encumbrances.

6 to >5.0 ptsGoodThe student mostly discusses the steps for verifying property, plant and equipment, including the steps that will be followed to uncover legal encumbrances.

5 to >4.0 ptsFairThe student generally discusses the steps for verifying property, plant and equipment, including the steps that will be followed to uncover legal encumbrances; however, several elements are not thoroughly analyzed or omitted.

4 to >3.0 ptsPoorThe student is not able to discuss the steps for verifying property, plant and equipment, including the steps that will be followed to uncover legal encumbrances.

3 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

7 pts

This criterion is linked to a Learning OutcomeSteps 8 & 9 – Inventories

10 to >8.0 ptsExcellentThe student thoroughly discusses the key decisions for attending/not attending the inventory count, and fully discusses the six elements of the inventory transaction cycle.

8 to >7.0 ptsGoodThe student mostly discusses the key decisions for attending/not attending the inventory count, and mostly discusses the six elements of the inventory transaction cycle.

7 to >6.0 ptsFairThe student generally discusses the key decisions for attending/not attending the inventory count, and generally discusses the six elements of the inventory transaction cycle. However, several omissions or limitations exist in the analysis.

6 to >5.0 ptsPoorThe student is not able to discuss the key decisions for attending/not attending the inventory count, and also unable to discuss the six elements of the inventory transaction cycle.

5 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

10 pts

This criterion is linked to a Learning OutcomeSteps 10 – Ethics and Rules of Professional Conduct

7 to >6.0 ptsExcellentThe student thoroughly discusses the rules of professional conduct and how the audit team is following those rules.

6 to >5.0 ptsGoodThe student mostly discusses the rules of professional conduct and how the audit team is following those rules.

5 to >4.0 ptsFairThe student generally discusses the rules of professional conduct and how the audit team is following those rules. However, several limitations or omissions exist in the write up.

4 to >3.0 ptsPoorThe student is not able to discuss the rules of professional conduct and how the audit team is following those rules.

3 to >0 ptsNo MarksThe student does not discuss the the topic at all, or this step was not completed.

7 pts

This criterion is linked to a Learning OutcomePLO2. Analyze and evaluate transactions and processes, evaluate risk, and recommend internal controls for operational efficiencies, integrity and compliance.

threshold: 3.0 pts

4 ptsExcellent: The assignment demonstrates that the student is fully able analyze and evaluate transactions and processes, evaluate risk, and recommend internal controls for operational efficiencies, integrity and compliance.

3 ptsGood: The assignment demonstrates that the student is mostly able analyze and evaluate transactions and processes, evaluate risk, and recommend internal controls for operational efficiencies, integrity and compliance.

2 ptsFair: The assignment demonstrates that the student is somewhat able analyze and evaluate transactions and processes, evaluate risk, and recommend internal controls for operational efficiencies, integrity and compliance.

1 ptsPoor: The assignment demonstrates that the student is mostly unable analyze and evaluate transactions and processes, evaluate risk, and recommend internal controls for operational efficiencies, integrity and compliance.

0 ptsUnacceptable: The assignment demonstrates that the student is completely unable analyze and evaluate transactions and processes, evaluate risk, and recommend internal controls for operational efficiencies, integrity and compliance.

4 pts