Auditing Introduction Letter
Auditing Introduction Letter
Kelly Garner
ACC/546
December 15, 2014
Mr. Michael De Marco
Anderson, Olds, and Watershed
Certified Public Accountants
Shoetown, ME 00001
December 15, 2014
Mr. Eric Unum
Vice President of Finance
Apollo Shoes, Inc.
100 Shoe Plaza
Shoetown, ME 00001
Dear Mr. Unum,
Thank you for taking the time to meet with Arnold Anderson, CPA (lead auditor); Darlene Wardlaw, CPA (engagement manager) and me last week. During our meeting, you and your team informed us that your “old auditors, Smith & Smith, CPAs, unexpectedly withdrew from the engagement” (University of Phoenix eCampus, ACC/546, Apollo Shoes Casebook). Anderson, Olds, and Watershed (AOW), CPAs appreciated the opportunity to conduct your upcoming audit. For the past 15 years, AOW has done successful audits for clients. Our CPAs are highly educated, thoroughly trained, and knowledgeable of current accounting standards. I am assigned to the auditor for Apollo Shoes, Inc. (Apollo). In this letter, please find details on the auditing and other assurance services our firm offers and the benefit each has for your company. An overview of my role as an auditor and certain requirements I will need to meet professional standard. Lastly, I will describe the ethical implication of the audit.
“In 2002, the Sarbanes-Oxley Act (SOX) established the Public Company Accounting and Oversight Board (PCAOB)” (U. S. Securities and Exchange Commission, 2014). The CEO and CFO are held accountable for the company’s financial records under Section 404, which “requires clear documentation and an audit of the company’s internal control environment” (Arens, Elder, and Beasley, 2014, p. 4). “Publicly held businesses that file reports with the SEC” are required by federal securities laws to prepare financial statements according to “Generally Accepted Accounting Principles” (GAAP) (U. S. Securities and Exchange Commission, 2014). The financial statements require annual audits. “Auditing is the accumulation
Kelly Garner
ACC/546
December 15, 2014
Mr. Michael De Marco
Anderson, Olds, and Watershed
Certified Public Accountants
Shoetown, ME 00001
December 15, 2014
Mr. Eric Unum
Vice President of Finance
Apollo Shoes, Inc.
100 Shoe Plaza
Shoetown, ME 00001
Dear Mr. Unum,
Thank you for taking the time to meet with Arnold Anderson, CPA (lead auditor); Darlene Wardlaw, CPA (engagement manager) and me last week. During our meeting, you and your team informed us that your “old auditors, Smith & Smith, CPAs, unexpectedly withdrew from the engagement” (University of Phoenix eCampus, ACC/546, Apollo Shoes Casebook). Anderson, Olds, and Watershed (AOW), CPAs appreciated the opportunity to conduct your upcoming audit. For the past 15 years, AOW has done successful audits for clients. Our CPAs are highly educated, thoroughly trained, and knowledgeable of current accounting standards. I am assigned to the auditor for Apollo Shoes, Inc. (Apollo). In this letter, please find details on the auditing and other assurance services our firm offers and the benefit each has for your company. An overview of my role as an auditor and certain requirements I will need to meet professional standard. Lastly, I will describe the ethical implication of the audit.
“In 2002, the Sarbanes-Oxley Act (SOX) established the Public Company Accounting and Oversight Board (PCAOB)” (U. S. Securities and Exchange Commission, 2014). The CEO and CFO are held accountable for the company’s financial records under Section 404, which “requires clear documentation and an audit of the company’s internal control environment” (Arens, Elder, and Beasley, 2014, p. 4). “Publicly held businesses that file reports with the SEC” are required by federal securities laws to prepare financial statements according to “Generally Accepted Accounting Principles” (GAAP) (U. S. Securities and Exchange Commission, 2014). The financial statements require annual audits. “Auditing is the accumulation
References: Arens, A. A., Elder, R. J., & Beasley, M. (2014). Auditing and Assurance Services (15th ed.). Upper Saddle River, NJ: Pearson. Retrieved December 9, 2014 from The University of Phoenix eBook Collection database. Gelman, Rosenberg, & Freedman, CPA (2014). What an Auditor Does and Doesn’t Do. Delphia Consulting. Retrieved December 15, 2014 from http://www.grfcpa.com/resources/publications/auditor-responsibilities/. Seitel, F. P. (2011). Chapter 6: Ethics. In The Practice of Public Relations (11th ed). Pearson Education, Inc. Retrieved September 9, 2014 from The University of Phoenix eBook Collection database. U. S. Securities and Exchange Commission. (2014). All about Audits. Retrieved December 13, 2014 from http://www.sec.gov/investor/pubs/aboutauditors.htm.