Auditing Introduction Letter

Anderson, Olds, and Watershed Associates

Certified Public Accountants

Mr. Larry Lancaster, Chairman, President & CEO

Apollo Shoes

Dear Mr. Lancaster:

On behalf of Anderson, Olds, and Watershed Associates, I am writing to propose our auditing and assurance services to your firm in conjunction with your existing audit staff. Anderson, Olds, and Watershed Associates (AOW) is a nationally distinguished firm that offers complete audit and assurance services. AOW has been in the auditing and assurance industry for over 15 years. Our auditing services are customized to meet the needs of our clients and their stakeholders.

Our audits are conducted in accordance with Generally Accepted Accounting Principles (GAAP) and include tests of your accounting records and other procedures we consider necessary to enable us to express an opinion. Upon the completion of our audits, we would discuss all findings and indicate such in our opinion letter. If we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement.

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, Elder & Beasley, 2012). The primary types of audits that our company performs are operational, compliance, and financial statement. The operational audit is a review of any part of an organization’s operating procedures and methods for the purpose of evaluating efficiency and effectiveness. The review of your organization’s financial records is performed to determine whether the organization is following specific procedures, rules, or regulations set by some higher authority. The financial statement audit that we perform is an audit conducted to determine whether the overall financial statements of an entity are stated in accordance with specified criteria...