October 18, 2011
Dear Mr. Lancaster
This letter will confirm our understanding of the arrangement for our audit of the internal controls and financial statements of Apollo Shoes Inc., for the year ending December 31, 2011.
We will audit the Company’s balance sheet as of December 31, 2011, as well as the related statements of income, comprehensive income, stockholders’ equity, and cash flows for the year ended in order to express an opinion. We will also audit to confirm that Apollo has maintained effective internal control over the financial reporting in the financial statements. We will conduct all of our audits in accordance with the auditing standards of the Public Company Accounting Oversight Board, which require us to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement and whether effective internal control has been maintained on the financial reporting in all material aspects. We believe through substantive tests of Apollo’s financial information and by gaining an effective knowledge of the types and performance of the company’s internal controls we will be able to create a reasonable basis for our opinions. If, for any reason, as a result of our engagement, we are unable to complete the audit or are unable to form an opinion, we may decline to express an opinion or to issue a report. Additionally, with approval from Apollo’s audit committee, we will prepare the state and federal tax returns for Apollo.
Management’s responsibilities include preparing the audited financial statements as well as maintaining effective internal controls over the financial reporting. Management is also responsible for making all financial records and data available to be audited, in addition to ensuring that the company has followed all appropriate laws concerning the company’s activities. Management is also responsible for correcting any material misstatements and affirming to us, in the...
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