Planning is one of the most demanding and important aspects of an audit. A carefully planned audit increases auditor efficiency and provides a greater assurance that the audit team addresses the critical issues. Auditors frequently prepare audit planning documents that provide client and industry background information and discuss important accounting and auditing issues related to the client’s financial statements.
Your assignment is to find and document information for inclusion in the audit planning memorandum. For purposes of this activity, you are to assume that you are the lead auditor for the accounting firm engaged to audit Winnebago Industries (WGO). You should obtain the necessary information by downloading Winnebago’s most recent annual report from its website. You may also use other sources of information such as recent 10-K filings obtainable from the website of the SEC to find additional information. You should address the following in your response:
- Brief company history.
- Description of the company’s business (for example, related companies and competitors).
- Key accounting issues identified from a review of the company’s most recent annual report. (Note: Do not concentrate solely on the company’s basic financial statements. Careful attention should be given to Management’s Discussion and Analysis as well as the Footnotes.)