Beginning the Audit

Beginning the Audit Report

March 4, 2013

To: Apollo Shoes Inc

100 Shoe Plaza

Shoe Town, ME 00001

We are pleased that your company has chosen our firm to plan and carry out its audit activities.

We are planning to carry out audit activities in the organization over a period of six weeks. We will perform risk assessments to help identify any high risk areas and analyze the results to suggest improvement in higher risk areas. Each week will be dedicated to different aspects of the audit.

We will first begin by notifying you of what areas will be audited. An engagement letter will then be sent to you detailing the general objective of the engagement. We will then schedule an entrance conference with you to discuss the purpose and scope of the engagement. During this time any questions or concerns will be addressed. Next a preliminary survey will be performed to help the auditor to understand your company. You should be prepared to present any procedures and policies your company has so that the auditor can become familiar with them. Weeks two and three of the audit will consist of gathering data, testing of internal controls, and conducting employee interviews. In week four, the auditor will prepare a draft of the audit report. Once the draft is completed then we will schedule an exit conference with you to discuss the draft report and any observations that need to be addressed. After the conference you will have a week to two weeks to respond to the draft before it is issued in week six. Once all concerns, observations, and recommendations have been addressed or agreed upon the final report is submitted. If you so desire, a follow up review will be scheduled to review the actions taken to resolve any issues or concerns.

Engagement Letter

March 4, 2013

Apollo Shoes Inc

100 Shoe Plaza

Shoe town, ME 00001

Dear Apollo Shoes,

This letter is to confirm our mutual...