Auditing Introduction Letter to Apollo Shoes, Inc. Name ACC/546 Date Professor June 3, 2013 Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 To the Board of Directors of Apollo Shoes, Inc.: Thank you for choosing Anderson, Olds, and Watershed (AOW) to audit your company. It is an honor to present you with an introduction to our auditing and assurance services. It is the firm’s belief for our clients to understand our qualifications and the benefits to the services we provide before providing the services. Three types of auditing services are provided by AOW. The first is an operational audit. Operational audits evaluate the efficiency and effectiveness of the company’s operating procedures and methods (Arens, …show more content…
I will coordinate and supervise a team of staff auditors. The staff auditors gather and test the evidence supporting the information in the audit. The audit manager, Darlene Wardlaw, reviews all audit work, prior to the review by a firm partner, Arnold Anderson. Mr. Anderson has the ultimate responsibility in ensuring an adequate review. A written report will complete the audit or review with AOW’s opinion of the audited information. It will show if the audited information is in accordance with accounting standards and also provides third parties with an adequate representation of Apollo Shoes, Inc.’s financial situation. We will need your help to ensure this audit meets our standards. We will need your staff to accommodate AOW with any financial documents we may need for the audit. We know you are limited on staff time and should be able to accommodate your request for federal and state tax return preparations, but we must receive approval from the audit committee prior to performing both the audit and the tax work. On a final note, I would once again like to thank you for choosing Anderson, Olds, and Watershed as your new auditors. I hope I have detailed our firm to your liking and given an adequate perception of our professional knowledge, standards, and the services we have to offer. If you need any additional information, please do not hesitate to ask. Sincerely, Anastasia Kepner, CPA Auditor for Anderson, Olds, & Watershed
This course is the first in a two-part series that deals with auditing a company 's financial reports, internal controls, and
As required by standards of the Public Company Oversight Board (United States) during our audit process, we will request from management written confirmation concerning representations made to use in connection with the audit. Timing and Fees The timing of our services is scheduled for performance and completion as follows: Begin interim fieldwork Completion of fieldwork Delivery of management letter December 1, 2015 March 15, 2016 March 22, 2016 4-1 CW 11/23/2015 MPh 2/19/2016 Delivery of audit report Delivery of tax returns March 29, 2016 March 29, 2016
After thoroughly understanding the operation of the Apollo Shoes, we will be able to determine the frame under which “fraud” can occur. The second step consist of the testing the journal entries. In this we will select the transactions occurred in the financial reporting year and will check the same, for the reason of their occurrence and supporting documents of the same. If during the test any misstatement is identified, the management will be asked to rectify the same and appropriate adjustments are done.
Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence
To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.
Elder, A. A., Beasley, M., & Elder, R. J. (2014). Auditing and assurance services (15th ed.). Upper Saddle River, NJ: Pearson.
Assuming that the end result is an unqualified audit report, outline the primary responsibilities of the audit firm after it issues the report in question.
The main source used in planning the audit is the WesFarmer’s annual financial report together with the relevant
| how big the incentive payment per non-defective pair is; whether shoes are produced with 100% standard materials or 100% superior materials, the durability and of its footwear; and how many models/styles are included in its product line.
Auditing planning is important because it helps the auditor determine his/her approach to the audit. There are two considerations that affect the approach: 1). Sufficient appropriate evidence must be accumulated to meet the auditor’s professional responsibility and 2). The cost of accumulating the evidence should be minimized. Concern for sufficient appropriate evidence and cost necessitates planning the engagement. The plan should result in an effective audit approach at a reasonable cost.
Arens, A. A., Elder, R. J., & Beasley, M. S. (2013). Auditing and Assurance Services. Old Tappan, NJ: Pearson Education.
The purpose of this memo is to update you on the status of the P-Card audit. To date, Best Auditors Co. have finished a handful of analytical procedures to serve as a jumping off point for the rest of the audit.
When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks. The sales and collection cycle is rather a substantial fraction of the audit because this unique segment employs a multitude of documentation and records ranging anywhere from customer and sales orders, shipping documents, credit memos, and general journal entries; therefore, a working
As a new auditor for the CPA firm of Croix, Marais, and Kale, you have been assigned to review the internal controls over mail cash receipts of Manhattan Company. Your review reviews the following: checks are promptly endorsed “For Deposits Only”, but no list of the checks is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.