...Upon the completion of auditing the financial records of ApolloShoes, Inc. it has been confirmed that there has been sufficient evidence obtained to support the audit opinion. There is a concern pertaining to the results of last yearâ€™s audit, because the audit was conducted last year by Smith and Smith CPAâ€™s and VP of finance Mr. Unum has requested that we do not contact Smith and Smith.
After careful review it has been determined that the issuance of an unqualified audit report would be appropriate. There were errors or deviations discovered during the audit involving financial statements ending December 31, 2006, and 2007, but it was not a departure from GAAP and therefore unnecessary to provide an explanatory paragraph. Because the audit evidence is deemed sufficient, the audit report will follow the standard unqualified audit report.
The purpose of this audit report is to primarily communicate the findings on ApolloShoes Inc. financial statements to safeguard third parties including the stockholders, investors, lenders, and creditors of the client. These third parties usually rely on the report for the assurance that the financial statements of ApolloShoes Incorporation are fairly presented according to GAAP. The evidence gathered for the audit was accumulated in correspondence with the audit procedure created by and approved by Darlene Wardlaw. Several statistical techniques were...
ApolloShoes Audit Report
Anderson, Olds and Watershed
Certified Public Accountants
123 Main Street
Upper Saddle River, NJ 00712
INDEPENDENT AUDITORâ€™S REPORT
To the Stockholders
We have audited the accompanying balance sheets of ApolloShoes, Inc. as of December 31, 2008, and the related statements of income, comprehensive income, shareholdersâ€™ equity, and cash flows for the year ended, and related notes to the financial statements. We have also audited managementâ€™s assessment, included in the accompanying Managementâ€™s Report on Internal Control Over Financial Reporting, that ApolloShoes, Inc. maintained effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal Control â€“ Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO criteria).
Managements Responsibilities for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements, in accordance with the generally accepted accounting principles in the United States of America. Management is also responsible for maintaining effective internal control over financial reporting relevant to the preparation and fair presentation of financial statements that are free form material misstatements.
Prepared: JML 3/3/2013
March 5, 2012
Dear Mr. Lancaster:
This letter will confirm our understanding of the arrangement for our audit of the financial statements of ApolloShoes, Inc. for the year ending December 31, 2011.
We will audit the Companyâ€™s balance sheet at December 31, 2033, and the related statements of income, comprehensive income, stockholdersâ€™ equity, and cash flows for the year then ended, for the purpose of expressing an opinion on them. We will also audit whether ApolloShoes, Inc. maintained effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control â€“ Integrated Framework issued by the Committee of Sponsoring Organization of the Treadway Commission (COSO criteria). ApolloShoes, Inc.â€™s management is responsible for these financial statements and for maintains effective internal control over financial reporting. Management is also responsible for making financial records and related information available for the audit and for identifying and ensuring that the company complies with the laws and regulations that apple to its activities. Lastly, management is responsible for adjusting the financial statements to correct materials misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and...
June 26, 2011
John Doe, CIA, CFE
Anderson, Olds, Watershed Associates
9295 Reitz Ave
Baton Rouge, LA 70092
June 26, 2011
Director of Internal Audit
100 Shoe Plaza
Shoetown, ME 00001
Dear Ms. Ramirez:
On behalf of Anderson, Olds, and Watershed Associates, I am writing to offer our auditing and assurance services to your firm in conjunction with your current audit staff. Anderson, Olds, and Watershed Associates (AOW) is a nationally renowned firm that offers some of the most complete audit and assurance services around. Our company offers three different types of audits that will benefit your company. AOW offers operational audits, compliance audits, and financial statement audits. As a company we believe that our services would greatly benefit your company. Through our operational audits, at an early stage, an analysis can be performed in order to correct an issue quietly. The predominant benefits of conducting an operational audit are: 1) it will provide assurance that key operational security controls in place, and 2) provide a measure of assurance that the control environment can remain constant with the companyâ€™s security protocols over time. The activities included in our operational audits include the following: 1) compromising by use of a threat assessment, 2) assessment and reconstruction of the current security plan, 3) reviewing the current...
...pleased to receive your notification to proceed with the audit and look forward to working with you. From the Audit Committee meeting minutes, we understand that ApolloShoes requires help with the yearly audit because the former CPA firm withdrew unexpectedly (University of Phoenix, n.d.). Anderson, Olds, and Watershed will conduct the audit and â€śprepare the state franchise tax returns as well as the federal tax returnsâ€ť (University of Phoenix, n.d., p. 9). Because of Apolloâ€™s previous work with Smith and Smith, Anderson, Olds, and Watershed is â€śrequired by auditing standards to communicate withâ€ť Smith and Smith (Arens, Elder, & Beasley, 2012, p. 212).
Ms. Wardlaw will be the manager on the audit. As the firm partner for the audit, I am also available if you have any problems or require any assistance. Enclosed, please find our engagement letter, engagement checklist, and an outline of timeframes and milestones for the audit.
Anderson, Olds, and Watershed
ANDERSON, OLDS, AND WATERSHED, CPAs
Audit Engagement Letter
November 3, 2007
Mr. Larry Lancaster, Chairman, President and CEO
4604 Oakley St.
Macon, Georgia 31212
Anderson, Olds, and Watershed would like to confirm our understanding of the arrangements for our audit of ApolloShoes financial statements for the year ending December 31, 2007.
...Mr. Larry Lancaster, Chairman, President & CEO January XX, 20XX
Dear Mr. Lancaster,
This letter is to confirm our arrangements for our upcoming audit of ApolloShoes. The audit will consist of auditing the financial statements to include the income statement, balance sheets, statement of retained earnings, and the statement of cash flows. As a follow up to our conversation, Iâ€™d like to highlight the services my firm offers its clients like yourself.
Rahaman, Miguel & Co. provides operational, financial and compliance audits for your various needs. The operational audits study the specific parts of the organization with the purpose of measuring its performance. Performance can be measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The overall benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks, creditors and governmental agencies. Finally, the compliance audit studies whether the entity being audited is following specific rules or procedures...
This letter is to confirm our understanding of the terms and objectives of our engagement and the nature of the services we will provide.
We will audit the consolidated balance sheet of ApolloShoes as of year end 2007, and the related consolidated statements of operations, retained earnings, and cash flows.
The objective of our audit is the expression of an opinion about whether your consolidated financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit will be conducted in accordance with auditing standards generally accepted in the United States and will include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion is other than unqualified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and payables and certain other assets and liabilities by correspondence with selected customers,...
...Beginning the Audit
June 11, 2012
Anderson, Olds and Watershed
Phoenix, Arizona 85003
Mr. Larry Lancaster
Phoenix, Arizona 85003
Dear Mr. Lancaster,
The purpose of this letter is to make sure we have an understanding as to what the audit of ApolloShoes financial statements will consist of for the year ending December 31, 2011. The objective of this audit of the companyâ€™s financial statements is to confirm that all aspects of the company are in compliance with the United States Generally Accepted Accounting Principles and that the companyâ€™s financial position, internal operations and cash flows are presented fairly within the financial statements.
Our audit will be conducted in accordance with U.S GAAP and will require us to test your accounting records and any other tests we deem necessary in order for us to form our professional opinion. If, for some reason, we come to an opinion other than unqualified, we will thoroughly discuss our reasoning with you in advance in hopes that you may consider our recommendations to fix the problem. However, if we are unable to conclude an official opinion, we do reserve the right to decline an opinion or issue any type of report for this engagement.
We will plan and perform the audit of the financial statements to obtain reasonable assurance about whether the financial statements are free of material misstatement from (1) errors, (2)...