The Audit Report
Memo: Independent’s Auditor Report
Apollo Shoes, Inc. operations in conformity with the fiscal year 2006 audit plan have a complete review by our audit team. The purpose of this review is to contribute to the progression of risk management and the control systems within the business by identifying and evaluating exposures to risk and the controls designed by management to lessen those risks (Arens et al., 2012). Apollo Shoes, Inc. operates from a large office with operations and warehouse facility in the Shoetown, Maine area. The company’s products are shipped to large and small retail outlets in various state areas. The company has more than 100 employees organized in different departments headed by the vice presidents. In addition, the company has recorded investment income from Apollo Shoes, Inc.’s investment in Shock-Proof Socks, a company that has not been issued any dividends as of the date of the statement. There were various sampling methods used: non-probabilistic, judgmental, and a probabilistic sample process to determine the sample size. The direct sampling method was based on judgmental criteria from items that are most likely to include misstatements, items that include selected population characteristics, and large dollar amounts (Arens et al., 2012). The systematic samples selection were the probabilistic sample. The audit team has calculated the intervals and carefully selected the times to sample based on size. This was used to help conclude the number of documents needed to review in the audit. Based on the audits, our expressed opinion is that the material from the fiscal year of 2006, its operations and its cash flows for the year is in compliance with the generally accepted accounting principles.
Arens, A. A., Elder, R.J., & Beasley, M.S. (2012). Auditing and assurance services: An
integrated approach (14th ed.). New York, NY: Pearson/Prentice Hall.
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