Auditing Introduction Letter

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Submitted by to the category Business and Industry on 02/25/2011 05:35 PM

Running Head: Auditing Introduction Letter

Auditing Introduction Letter to Apollo Shoes, Inc.

ACC/546

August 21st, 2010

University of Phoenix

Anderson, Olds, and Watershed CPAs

Shoetown, Maine, 00003

October 6,2007

Apollo Shoes, Inc.

100 Shoe Plaza

Shoetown, ME 00001

To the board of directors of Apollo Shoes Inc:

You have requested us to provide auditing for your company. As an auditor of Anderson, Olds, and Watershed (AOW) CPA firm, I am pleased to present you an introduction about our auditing and other assurance services, along with the benefit for you as the client. We believe by explaining our qualification requirements as well as our roll of external auditors and assurance providers, you will have a better understanding of our services and enjoy the relationship with our firm and our personnel.

Different types of auditing our firm offers and their benefit for the client:

 Operational audit—evaluates the effectiveness and efficiency of different operating procedures and policies in an organization. An objective opinion will be provided through operational audit, which allows the client to gain a better understanding of how well the company is using its business resources, also lead the company to increase its production cost controls. We will test cost allocation processes to determine the strengths and weaknesses of the workflow; help the company find issues in business operation and recommend solutions for improvement. To a producer and retailer like your company, improved production processes could shorten turnaround times of raw materials to finished goods, which could bring higher working capital for further business development.

 Compliance audit—is conducted by the auditors to examine whether or not the client is following applicable policies, regulations, or procedures, which...

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