Audit Planning and Control

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...