Auditing: Apollo Shoes Case-Letter to the President

June 30, 2011

Apollo Shoes, Inc.

Larry Lancaster, President

Dear Mr. Lancaster

Our firm offers audit and assurance services for a variety of industries. We have a great deal of experience auditing firms in your industry and size. The following summarizes the variety of assurance and attestation services we have to offer.

We offer attestation services, which are a type of assurance services, which issue a report about the reliability of the assertions made by another party and the information presented. The attestation services are audits of historical financial statements, attestation of internal control over financial reporting, review of historical financial statements, and a variety of other attestations services.

Audits of historical financial statements is the form of attestation that is the most familiar to most executives and part of the service we hope to provide to your firm. An audit accumulates and evaluates the evidence presented in historical financial statements and management’s assertions. The information is verified and evaluated in accordance with auditing standards generally accepted in the United State of America. The standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit also includes assessing the accounting principles used and significant estimates made by managements, as well as evaluating the overall financial statement presentation. There are three primary types of audits, operational, compliance, and financial statement. Our auditors are competent, stay current on new developments in auditing and in your industry and strive to maintain a high level of mental independence.

Audits assure all users of the financial statements that the information risk has been reduced and the information presented is reliable. Decision makers can then use the audited information on that assumption that it is reasonably...