Beginning the Audit Report

Beginning the Audit Report

Michelle Gray

ACC546

April 21, 2014

Instructor David Phillips

Beginning the Audit Report

Michelle Gray

MultiTaskers Accounting & Auditing Services, LLC

PO Box 52216

Shoetown, ME 00005

April 21, 2013

Apollo Shoes, Inc.

100 Shoe Plaza

Shoetown, ME 00001

Dear Apollo Shoes, Inc.:

The purpose of this correspondence is to confirm our understanding of the arrangements of the audit of Apollo Shoes financial statements and what it will comprise of for the year ending December 31, 2013. The reason for this audit of the Apollo Shoes financial statements are to confirm that all facets of the Apollo Shoes are in compliance with the United States Generally Accepted Accounting Principles (GAAP) and that the Apollo Shoes financial position, internal operations and cash flows are presented justly within the financial statements.

Our audit will be performed in accordance with U.S. GAAP and will require us to check the Apollo Shoes accounting records and any other tests we deem necessary in order for us to form our professional opinion. If, for some reason, we come to a view other than unqualified, we will meticulously explain our logic with you in advance in expectation that you will reflect on our suggestions to resolve the dilemma. However, if we are unable to finish a certified opinion, we do set aside the right to decline an opinion or issue any type of report for this engagement.

We will chart and execute the audit of the financial statements to attain logical assurance about whether the financial statements are free of material misstatement from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or policies that are attributable to the body or to acts by management or staff acting on behalf of the entity (Arens, Beasley, & Elder, 2012). The audit will contain investigative evidence supporting the amounts and disclosures in the...