Engagement Letter Week 2

To the board of Directors of Apollo Company:

You have requested that we conduct an audit that will assist in the management of Apollo Shoes Company. This will require that we audit the balance sheet of Apollo Company as of 31st December 2006, and the related cash flows as well as income statements of the year that ended 31ST December 2006. I am pleased to inform you that I accept and understand this engagement through the means of this letter.

The audit that I will conduct will be in accordance to the recognized Audit International Standards. The international standards requires that my firm and I perform and plan this audit to obtain an assurance that is behind a reasonable doubt that the Company’s financial statements have no misstatements of a material nature. The audit will include an examination based on a test on the evidence that support the amount of disclosure obtained on the financial statements. Moreover, the audit will include the principles of accounting used and the management significant estimates. In addition to these, the financial statement presentation will also be evaluated.

Due to the existence of some inherent limitations and their test nature, together with the inherent limitations of any internal control system and accounting poses an unavoidable risk of some material misstatements remaining undiscovered. In addition to the financial statements report, I expect to provide the company with a separate letter which will provide information on the existing material weaknesses in accounting and the systems of internal control which are at my disposal.

At this point I want to remind you that financial statement responsibility and adequate disclosure lies within the company’s management. This includes the adequate accounting records maintenance as well as the internal records maintenance, accounting policies application and selection, and the company’s assets safeguarding. I will request the management to provide a written confirmation on the...