Apollo Shoes

The planning portion of the audit incorporates many areas in the evaluation of current or potential clients. Most of the steps required in the planning phase of the engagement are the same for new or existing clients. Apollo is a “new” client, thus there are no prior year workpapers to use. As a teaching tool this benefits the students as they have to begin from scratch. While there are many audit procedures associated with the planning of an audit, the Apollo case focuses on the following tasks (

An audit program for these steps is also included in order to show what other procedures may be required.

General Procedures:

|Task: | |

|Review Audit Committee meeting on October 18, 2007 and draft an appropriate engagement letter. | |

|Write a Brief Audit Staffing Memo. | |

|Develop Audit programs for the substantive audit procedures for the balance sheet and income statement | |

|areas listed. | |

|Review the Minutes of the Board of Directors Meetings and prepare a working paper of the matters | |

|relevant to the 2007 Audit. | |

|Create an Income Statement and Balance Sheet from the Trial Balance. | |

|Perform Preliminary Analytical Procedures on the 2007 Unaudited Financial Statements. | |

|Prepare a Memo explaining your findings from the analytical procedure review. | |

|Prepare a Memo addressing Materiality for Apollo Shoes....