The first stage of the audit procedure is where the planning and designing of the audit procedure is developed which has eight subdivisions. Planning is indispensable in assisting the hearer to obtain sufficient and appropriate grounds at the lowest sensible cost and to avoid misinterpretations with the client. The initial planning involved in the first stage of the audit procedure is comprised of the first four subdivisions. The first subdivision is to accept the client or go on supplying services to an bing client and execute the initial audit planning. In 1965, KPMG LLC, was elected by Diebold, Incorporated Audit Committee to be their independent registered accounting house. At which clip, KPMG LLC did a new client probe and learned in 1859 Carl “ Charles ” Diebold established Diebold Safe & A ; Lock Company and located the concern in Cincinnati, Ohio, USA. The company began their concern by fabricating safes and vaults for the banking industry. The company ‘s headquarter for Diebold Safe & A ; Lock Company was relocated to Green, Ohio, USA in 1872. Conversely, the reference is recorded as being in North Canton, Ohio. Soon thenceforth, the company became integrated under Ohio State Torahs in August of 1876. Progressing frontward into 1936, Diebold Safe & A ; Lock Company diversified the company by buying concerns that focused in trading the traffic circle, index, and microfilming systems. In add-on, the company branched out even farther and begun making armour home bases for military armored combat vehicles in that same twelvemonth. Diebold Safe & A ; Lock Company was retitled to Diebold, Incorporated in 1943. Diebold first began merchandising stock publically in the 1930s. However it was n’t until April 27, 1964, Diebold publically traded company portions on the New York Stock Exchange with the hallmark symbol ‘DBD. ‘ After obtaining the information, KPMG accepted Diebold, Incorporated as a client. At which clip, an engagement missive would be exchanged between the companies to hold a written understanding to sketch the duties of direction and the hearers, depict the battle ‘s aims and to unwrap the restrictions of the battle. After which, KPMG will develop the audit scheme appropriate for the battle.
During subsequent one-year reappraisals performed by KPMG to make up one’s mind to retain Diebold, Incorporated as a client, the undermentioned events of the company were portion of what was evaluated with the fiscal statements in the consideration. Subsequently in 1970, Diebold started to regenerate the company and began marketing security and surveillance systems that were computing machine ran. Besides in the 1970s, the company began retailing legion Automated Teller Machines besides known as an ATM. Diebold entered the twenty-first century by broadening their skylines one time once more with geting Global Election Systems, an pioneer in touch-screen engineering, and joined in the election industry. However in 2003, Diebold ‘s repute was marred in the election industry due to unsated reappraisals of the machines package and allegations of fraud. In the recent twelvemonth, Diebold has made important alterations in their company. On August 20, 2012, Diebold, Incorporated ‘s new Transfer Agent became Wells Fargo Shareowner Services. The stockholder records and investing information automatically transferred to Wells Fargo Shareowner Services. Subsequently, Diebold announced it had canceled programs to construct a $ 100 million corporate central offices in Green, Ohio. Thomas W. Swidarski, former President and Chief Executive, provided an account in a statement, “ As we ‘ve been analysing our near – long-run growing precedences, it has become clear that puting more than $ 100 million in a central office installation is non economically executable given the other precedences for the concern at this clip. ” ( Cho 2012 ) . However, guess indicates the 58 per centum, $ 17.4 million, diminution in the 3rd one-fourth 2012 net incomes to be the material ground for the cancellation. Nevertheless, Diebold is relentless the determination was centered on puting in moneymaking acquisitions. In the thick of a confusing downward spiral in net incomes, Diebold ‘s Thomas W. Swidarski, President and Chief Executive resigns on January 24th, 2013 after functioning the company 17 old ages. Presently, Diebold has about 17,000 employees in about 90 states worldwide. Additionally, KPMG LLC still maintains Diebold as a client.
The 2nd subdivision of the first stage of the audit procedure is to understand the client ‘s concern and industry. During this subdivision, the hearer is responsible for achieving equal cognition of the concern and the concern ‘s industry. The environment of the company is assessed along with the internal controls put in topographic point to mensurate the hazard of material misstatement of the company ‘s fiscal statements. Throughout this subdivision, the hearer will obtain grounds by touring the client ‘s installations and operations, place related parties, evaluate the codification of moralss, and obtain corporate minute notes. In add-on, public presentation measurings are taken to compare ratio analysis information against the company ‘s rivals.
The 3rd subdivision of the first stage of the audit procedure is to measure client concern hazard. The hearer utilizes information obtained in the two old stairss to measure the client concern hazard, the hazard that the client will be unsuccessful in accomplishing its ends. KPMG chiefly would concentrate on the chance of Diebold holding material misstatement associated with assets and good will associated with amalgamation minutess. Sarbanes Oxley Act of 2002 authorizations direction to attest that the company has guidelines for revelation of material information refering to concern hazard.