Auditing Introduction Letter - Apollo Shoes

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Date Submitted: 09/15/2011 09:25 PM

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Mr. Larry Lancaster

Chairman, President and CEO

Apollo Shoes, Inc.

Re: Upcoming Audit of Apollo Shoes

Dear Mr. Lancaster:

The purpose of this letter is to confirm our upcoming audit of Apollo Shoes. I would also like to take this opportunity to explain the auditing and other assurance services our firm has to offer and the benefit each has for our client. As the assigned auditor to this engagement, I would like to explain my role in providing available assurance service to your firm. And lastly, this will also describe the qualifications required to meet the standard for services we offer for your better understanding.

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Arens et al., 2006). As businesses faced new types of risks and the amount of information increases, the demand for assurance on other types of information is important on improving the quality of information used by decision makers. Anderson, Olds, and Watershed Associates (AOW) perform three primary types of audits that will benefit your firm. These are operational audit, compliance audit, and financial statement audit. Operational Audit is a deeper review of the company operation to properly evaluate the efficiency and effectiveness of any part of an organization such as computer operations, production methods, marketing, and company structure. We recommend improving operations at the completion of this audit. Compliance Audit is undertaken to determine whether the organization is following specific procedures, rules, or regulatory guidelines. We will test all the policies your company set up if monitored and abide or has broken rules. Financial Statement Audit is conducted to determine whether the overall financial statements are stated in accordance with the specified criteria (Arens et al., 2006).

Our firm is aware that internal and external users such as...