C21 Memo

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Anderson, Olds, and Watershed CPA
(C-2-1)

Date: 12/20/2012
From:
To: Darlene Wardlaw

Subject: Accounts Receivable Confirmation

We have used positive confirmations for most balances that are large in size, were we expect errors and disputes and because Apollo’s internal control was assessed as very week. The recipients were required to fill in some Blank confirmations. We required that confirmations received electronically were verified by calling the sender. We followed up non responses with a second and third request. As an alternative procedure for those accounts which we did not receive a response, we inspected shipping documents and reviewed subsequent events. Negative confirmations were used for low risk small amounts were we expected to hear from the customers .

C-2-2Apollo Shoes, Inc.
Shoetown, ME

Neutralizer
1359 Central Boulevard
Derma, MS 39530
Attn: Accounts Payable Dept.

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Your prompt attention to this request will be appreciated.

Samuel Carboy
______________________
Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2011, is
$3,051,755.48 |
Purchases from Apollo Shoes during the year 2011 totaled
$3,051,755.48

This balance is correct except as noted below:

Our records indicate that we owe $1388.75 more than indicated above. We wrote a check to Apollo on 12/28 for $3,053,144.23 for 10 pallets of shoes.

Date: 1/20/2012 By: __Rudy Robinson______________________
Title: _Accounts Payable ______________

C-2-3Apollo Shoes, Inc.
Shoetown, ME

Mall-Warts
146 Boardwalk Drive
Atlantic City, NJ 08401
Attn: Accounts Payable Dept.

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Your prompt attention to this request will be appreciated.

Samuel Carboy
______________________
Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2011, is
$20,549,225.88
Purchases from Apollo Shoes during the year 2011 totaled
$122,826,158.60

These amounts are correct except as noted below:
The amounts appear right, but we entered into involuntary bankruptcy on November 3. We told Apollo about this back at that time. We don’t know why they shipped us so many pairs in late December (including over 1600 pairs of size 23’s that we can’t even give away!)! We didn’t order them and we can’t afford to send them back! Date: 1/14/2012 By: __Action Jackson____________

Title: _Liquidation Coordinator______

C-2-4Apollo Shoes, Inc.
Shoetown, ME

Run for Your Life Shoes
Attn: Accounts Payable Dept.
5110 Speedway Drive
Los Angeles, CA 90035

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Your prompt attention to this request...
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