While evaluating Apollo Shoes‚ there are some areas of concern that are potential fraudschemes. The fraud can lead to the entire collapse/demise of the company if not corrected.These will also affect the share value and investor confidence. An overview of the process of investigation along with recommendations for the company.As with any company‚ revenue recognition is an important part of operations of a ApolloShoes. As stated in GAAP standards‚ revenue generated must be realistic and recognizable
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Mr. Lancaster‚ The firm of Anderson‚ Olds‚ and Watershed is 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 Apollo Shoes 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 “prepare the state franchise tax returns as well as the federal tax returns” (University
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Beginning the Audit ACC 546 June 11‚ 2012 Anderson‚ Olds and Watershed Phoenix‚ Arizona 85003 Mr. Larry Lancaster Apollo Shoes 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 Apollo Shoes financial statements will consist of for the year ending December 31‚ 2011. The objective of this audit of the company’s financial statements is to confirm that all aspects of the company are in compliance
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Notes on Apollo Shoes Audit Case Task #1 (Overview/Intro) Go to the “Weekly Materials” folder and locate the “Apollo Shoes Files” folder‚ between the week 1 and week 2 folders. Under this menu you will find a file entitled Apollo Shoes Case Study.doc. This file gives you all of the details and evidence that you will need for the case. We will only be completing specified sections of this case as discussed below. Review the table of contents in the case document (page 4.) This will tell you
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Dear Mr. Smith‚ This letter confirms our understanding of the arrangements for our audit of the financial statements of Apollo Shoes‚ for the year ending December 31‚ 2012. We will audit Apollo Shoe’s balance sheet as of 12/31/2012‚ along with the related income statement‚ statement of retained earnings‚ and statement of cash flows for the entire year of 2012. We will provide a professional opinion based on the information found in the audit. All of the financial statements will be the responsibility
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Design tests of controls‚ substantive tests of transactions‚ and analytical procedures for the following Apollo Shoes cycles: o Inventory and warehousing cycle o Cash cycle 1. Abstract‚ Inventory and warehousing cycle (tests of controls) YOLANDA 2. Intro‚ Inventory and warehousing (substantive tests of transaction) AMY 3. Conclusion‚ Inventory and warehousing cycle (analytical procedures) JUSTINIA 4. Cash cycle (Test of controls) ANNABELLE 5. Cash cycle (substantive tests of transactions
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Engagement Letter Apollo Shoes‚ 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 Apollo Shoes 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
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a.i.1.a.i.1.a. Investigate exceptions reported by customers. a.i.1.a.i.1.b. Perform alternative procedures on accounts that do not respond to positive confirmation requests. a.i.1.a.i.1.b.i. Vouch cash receipts after the confirmation date for subsequent payment. a.i.1.a.i.1.b.ii. Vouch sales invoices and shipping documents. 4. Evaluate the adequacy of the allowance for doubtful accounts. a. Vouch a sample of current amounts in the aged trial balance to sales invoices to determine whether amounts
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Similar to what you did with the Revenue Cycle‚ I want you to prepare a bridge working paper for the audit of Apollo Shoes as of December 31‚ 2007‚ listing the major errors that could occur in the purchasing system and to describe the test of controls procedures for auditing related purchasing controls to determine whether reliable control exists. I don’t think that Apollo has enough purchase transactions that we need to rely on the controls (in other words‚ we’ll look at them all)‚ but we need
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ICC-1 Apollo Shoes‚ Inc. Internal Control Questionnaire Sales Transaction Processing December 31‚ 2007 Objectives and Questions Yes‚ No‚ N/A Comments Environment: 1. Is the credit department independent of the sales department? Yes. Credit manager in Treasurer’s office 2. Are sales of the following types controlled by the same procedures described below? Sales to employees‚ COD sales‚ disposals of property‚ cash sales and scrap sales. No available information‚ apparently not applicable
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