April 3, 2013
Mr. Larry Lancaster, Chairman
Apollo Shoes, Inc.
Dear Mr. Lancaster:
This will confirm our understanding of the arrangements for auditing Apollo Shoes, Inc. financial Statements for 2011.
We will audit the balance sheet at December 31, 2011, and the related statements of income, retained earnings, and cash flows for the year ending that date. Our audit will be made in accordance with the standards of the Public Company Accounting Oversight Board and will include such tests of the accounting records and such other auditing procedures as we consider necessary.
We will also audit whether Apollo Shoes, Inc. maintained effective internal control over financial reporting as of December 31, 2010 based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organization of the Treadway Commission (COSO criteria). Apollo Shoes, Inc.’s management is responsible for making financial records and related information available for audit and for identifying and ensuring that the company complies with the laws and regulations that apply to its activities. Lastly, management is responsible for adjusting the financial statements to correct material misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Our responsibility is to express an opinion on these financial statements and an opinion on the effectiveness of the company’s internal control over financial reporting based on our audits. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement.
As stated earlier, we will conduct our...
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