Acc 546 Beginning the Audit Report

Beginning the Audit Report

Auditing /Acc546

March 26, 2012

Seamons and Associates

March 26, 2012

Larry Lancaster

Chairman of the Board of Directors,

President and CEO

Apollo Shoes, Inc.

100 Shoe Plaza

Shoetown, ME 00001

Dear Mr. Lancaster,

We are honored you have selected our firm to perform your audit services. Before we begin the audit and assurance services for your company, we would like the opportunity to explain the audit process that we will follow. First we will plan the audit. This first involves meeting with your internal auditor and senior management to agree-upon the objectives for the audit engagement. We will then set forth the objectives to be tested in an engagement letter. Next step our audit team will gather data concerning your business structure, your financial processes, and make risk assessments. After we have gained an understanding of your business we will examine your internal controls especially as they relate to financial transactions. We will perform tests to measure the efficiency of the internal controls, we will also perform test on identified key processes as they relate to risk and meeting engagement objectives. Additionally we will test to ensure processes conform to GAAP and applicable laws and regulations. Once all tests results and documents have been reviewed we will provide a report presenting our opinion regarding your company's compliance with GAAP auditing standards, we also as part of the report demonstrate areas for improvements with internal controls and financial processes.

Sincerely

Daron Millsaps, CPA, CIA

Engagement Letter

Seamons and Associates

March 26, 2012

Larry Lancaster

Chairman of the Board of Directors,

President and CEO

Apollo Shoes, Inc.

100 Shoe Plaza

Shoetown, ME 00001

Dear Mr. Lancaster,

This will confirm our understanding of the objectives and arrangements to be met from our audit engagement of Apollo Shoes Inc. for the year ending December...