Wk 2 Acc 546 Engagement Letter

Beginning of Audit

Teja Gadde

ACC 546

March 30, 2013

Apollo Shoes Audit Engagement Letter

Eric Unum

Vice-President of Finance

Apollo Shoes Inc.

100 Shoe Plaza

Shoetown, ME 00001

Dear Mr. Unum,

I would like to personally thank Apollo Shoes for choosing Anderson, Olds, and Watershed (AOW) for your auditing and assurance needs. For this engagement, we will be auditing the consolidated financial statements for the year ending December, 31, 2007.

Audit Objective:

The objective of this is audit is to investigate Apollo's financial statements for fairness in presentation, accuracy and timeliness and conformity to generally accepted accounting principles (GAAP). Our audit team will put forth their expert opinion on the financial statements based on the evidence gathered during the audit. The audit will be conducted in adherence to generally accepted auditing standards (GAAS). The audit will include test of records and transactions along with additional procedures deemed necessary by the audit team to form and express an opinion regarding the Apollo's financial statements.

If we are to include an unqualified or adverse opinion regarding the audit of the financial statements, we would have with you a candid discussion of our opinion and our reasoning for its inclusion in the report before finalizing the report. If, for any reason we are unable to form an opinion, we may choose to not issue an opinion or report for this audit engagement.

Audit Procedures:

The audit will examine the financial statements and collect evidence regarding the accuracy of figures and the disclosures on Apollo's financial statements. Since the audit will involve judgment in regards to number of transactions tested, areas for further testing, etc, we plan on obtaining "reasonable rather than absolute assurance (Arens, 2012)" on whether Apollo's financial statements are free of material misstatements, stemming from fraudulent activities, asset misappropriation, errors and/or non...