Beginning the Audit Report
Justin A. Miller
Monday, November 26, 2012
Instructor: Scott Phillips
2316 Birmingham, Alabama 35215
November, 26 2012 Mr. Chuck Jemison, President
Apollo Shoes 1369 Parkway Drive
Eastdale, Georgia 41563
Dear Mr. Jemison:
This will verify our comprehension of the measures for the financial statements audit for Apollo Shoes Inc. for the ending year of December 31, 2012. We will audit the organization’s financial statements for the ending year of December 31, 2012 for the purpose of communicating an opinion on the equality they present, overall material and measurable respects, the economic position, operational results, and cash flows in obedience with GAAP principles. We will start the audit upon reviewing the financial statements, organizational charts, and 2009-2011 federal and state income tax returns. Once the information is carefully reviewed, we will have a risk workshop mainly to recognize important risks and increase risk attentiveness, draft an audit plan, and plan a first assembly. The first assembly should contain senior management and organizational personnel that may be included in the audit. During the assembly, the scope of the audit will be discussed. Please feel free to ask the auditors to examine and review an area that concerns you. The time-frame of the audit will be decided. Therefore, any possible timing issues should be discussed that could impact the audit. After the first assembly, the auditor will confirm the audit plan and initiate fieldwork. Fieldwork usually entails conversing with staff, reviewing practice handbooks, having knowledge about the business procedures, testing for compliance with appropriate guidelines and processes and laws and regulations, and evaluating the competence of internal controls. Staff members should be mindful that scheduled meetings will be with the auditor. As work advances, our fees will be billed based on the total amount...
References: 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.
Audit Engagement Checklist. (2010). StudyMode.com. Retrieved July 8, 2012, from http://www.studymode.com/essays/Audit-Engagement-Checklist-399897.html.
Cornell University. (2002). Definition of Internal Audit. Retrieved July 8, 2012, from http://www.audit.cornell.edu/audit.html.
Louwers, T. J. & Reynolds, J. K. (2002). Apollo Shoes casebook. New York, New York: McGraw-Hill. BEGINNING THE AUDIT REPORT
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