Overlook Video Stores Inc
Overlook Video Stores Inc. (OVS) To: Ms. Alice Hartford, Partner
From: CA, Audit Senior
Re: Planning for the year end 2009 of OVS and requested control deficiency information Engagement Overview
The purpose of this memo is to document the planning of the financial statement audit st engagement of our client Overlook Video Stores Inc. (OVS) for the year ended December 31
,
2009. OVS has been our client since its inception in 1998. This year’s audit will commence
January, 2010, though certain procedures have already taken place to ensure our opinion can be given promptly, as requested by OVS’s bank.
OVS is a privately held company, headquartered in Toronto and operating in the DVD rental and retail industry. OVS has over thirty store locations and is rapidly expanding, including a recent foray into the online DVDrental/retail space and potential entry into Western
Canada markets.
The main users of OVS’s financial statements are the managing (majority) shareholder,
Mr. Victor Ziegler, the three remaining private investors who exercise no active participation in managing business operations (and so will be using these financial statements to monitor the health of and management stewardship over their investment) and OVS’s bank which has extended financing for expansion of the business (and thus requires financial statements for monitoring OVS’s credit/default risk). To satisfy the aforementioned users’ needs, we must not only provide audited financial statements, but also identify OVS’s significant business risks and bring those risks to the attention of the financial statement users.
The second purpose of this memo, as per your request, is to specifically address the control issues arising from OVS’s new Internet business. Engagement Risk and Financial Reporting Risk Analysis (CAS 315)
We have performed an analysis of the Engagement Risk (ER) and Financial Reporting Risk of st the OVS financial statement audit for the year
From: CA, Audit Senior
Re: Planning for the year end 2009 of OVS and requested control deficiency information Engagement Overview
The purpose of this memo is to document the planning of the financial statement audit st engagement of our client Overlook Video Stores Inc. (OVS) for the year ended December 31
,
2009. OVS has been our client since its inception in 1998. This year’s audit will commence
January, 2010, though certain procedures have already taken place to ensure our opinion can be given promptly, as requested by OVS’s bank.
OVS is a privately held company, headquartered in Toronto and operating in the DVD rental and retail industry. OVS has over thirty store locations and is rapidly expanding, including a recent foray into the online DVDrental/retail space and potential entry into Western
Canada markets.
The main users of OVS’s financial statements are the managing (majority) shareholder,
Mr. Victor Ziegler, the three remaining private investors who exercise no active participation in managing business operations (and so will be using these financial statements to monitor the health of and management stewardship over their investment) and OVS’s bank which has extended financing for expansion of the business (and thus requires financial statements for monitoring OVS’s credit/default risk). To satisfy the aforementioned users’ needs, we must not only provide audited financial statements, but also identify OVS’s significant business risks and bring those risks to the attention of the financial statement users.
The second purpose of this memo, as per your request, is to specifically address the control issues arising from OVS’s new Internet business. Engagement Risk and Financial Reporting Risk Analysis (CAS 315)
We have performed an analysis of the Engagement Risk (ER) and Financial Reporting Risk of st the OVS financial statement audit for the year