Date: Fri, 26 OCT 2007 09:42:35 +0000
From: "Karsen Spain"
Subject: Upcoming Apollo Shoes Engagement
Thank you so much for your congratulations. I look forward to working with you as well and learning from you and from ‘Uncle Arnie”. Thank you for the heads up about him, I will make sure to “stay on my toes” as you said. I have attached a rough draft of the Engagement Letter, along with the checklist, and an outline of our timeline and projected milestones for the audit that you requested. Additionally since this is a new role for me, I would love feedback on my plans for the audit to make sure that I am doing my best to represent Anderson, Olds, and Watershed and to ensure that the audit is properly executed.
After I receive notice that the engagement letter has been signed by Apollo Shoes Inc., I will start collecting information about the company. I plan on spending next week researching and learning all about Apollo Shoes, Inc. I will begin collecting data and documentation from the company including last year’s 10-K filing with the SEC. I will also be speaking with the involved employees of Apollo and reviewing statements from them to assess the internal controls that are in place and the compliance with federal regulations.
The objective of the audit is to form an opinion about whether the financial statements are accurately presented and conform to the Generally Accepted Accounting Standards (GAAS). Our responsibility is to review the company in its entirety, plan appropriately, and perform the audit to obtain reasonable belief that all financial statements are free of misstatements. My strategy is to get as much documentation as possible for review, complete a risk assessment and then from there plan the level of testing needed to audit Apollo’s internal system of controls and carry out all tests.
Regardless of the level of testing...
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