Submitted by: Submitted by wzjohnson
Views: 59
Words: 1488
Pages: 6
Category: Business and Industry
Date Submitted: 01/13/2015 10:30 PM
Abstract
Pericom Semiconductor Corporation (Pericom), based in Milpitas, California, announced its intention
to ratify Burr Pilger Mayer, Inc. as the independent public accounting firm for the company's 2015
fiscal year. (www.pericom.com, (2014)).
Burr Pilger Mayer, Inc. (BPM) is one of the largest California based public accounting firms.
BPM's Securities and Exchange reporting practice has served been serving public companies in
Silicon Valley for 26 years, and has the specialized talent needed to audit a tech company like
Pericom. ( www.bpmcpa.com).
BPM will conduct a series of tests and procedures to ascertain the degree of fairness with
which Pericom's financial statements are presented. Included are procedures to gain an understanding
of the internal control environment, tests of internal controls, and substantive tests. All are meant to ensure that the auditors' unqualified opinion does not result from negligence, failure to exercise due
professional care, or oversight. Adherence to generally accepted auditing standards and applicable
regulations along with detailed documentation of the audit process will provide BPM with adequate
defenses against lawsuits. (Arens, (2014)).
Planning an Audit
Burr Pilger Mayer Inc. (BPM), an independent audit firm, must develop an audit plan for
Pericom Semiconductor Corporation's (Pericom) 2015 fiscal year audit. BPM's audit plan will
spell out specific procedures for all four phases of the audit process, and serve as a guide
throughout the audit process. Initially, BPM must conduct risk assessments based on the
assertions made in Pericom's financial statements. The risk assessments will enable BPM to
estimate the likelihood that material missstatements exist within Pericom's financial statements.
The risk assessments will include evaluations of acceptable audit risk, inherent risk, and control
risk. Information contained in the three risk assessments will be combined to...