Engagement Letter

Topics: Balance sheet, Financial statements, Income statement Pages: 3 (637 words) Published: August 24, 2010
Apollo Engagement Letter

University of Phoenix

Anderson, Old, and Watershed, CPA’s, LLC
Shoetown, ME 00001

October 26, 2007

Mr. Larry Lancaster
President and Chairman
Apollo Shoes, Inc.

Dear Mr. Lancaster:
This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. We will audit the consolidated balance sheet of Apollo shoes as of December 31, 2008, and the related consolidated statements of operations, retained earnings (deficit), and cash flows for the year ended. The purpose of the audit is to express an opinion about whether your consolidated financial statements are fairly presented, in all material respects, in conformity with accounting principals generally accepted accounting principals. This audit procedure will include tests of documentary evidence supporting the transactions recorded in the accounts, test of physical existence of inventories, and direct confirmation of receivables and payables and certain other assets and liabilities. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination for all transactions, there is a risk that material errors, fraud or illegal acts, may exist and not be detected by us. Our audit will include obtaining an understanding of your internal controls sufficient to plan the audit and to determine the nature, timing and extent of audit procedures to be performed. We have no responsibility to identify and communicate significant deficiencies or material weaknesses in your internal controls as part of this engagement. However, during the audit, if we become aware of such reportable conditions, we will communicate them to you. You are responsible for maintaining an adequate and efficient accounting system that will help assure the preparation for proper financial statements. You are responsible for making all financial...

References: Auditing and Assurance Services (11th ed). Arens, Elder, Beasley. Prentice Hall (2006)
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