Beginning the Audit Process
Beginning the Audit Report Peter Serunjoji ACC546 January 15, 2012 Arlette Peoples
Beginning the Audit Report
MEMORANDUM
TO: Larry Lancaster, Chairman, President, and CEO of Apollo Shoes, Inc.
FROM: Matrix Certified Public Accountants (MCPA) Inc.,
DATE: January 15 2012
SUBJECT: Beginning the Audit Report (Engagement letter, Engagement checklist, Outline of timeframes and milestones of the audit) Dear Mr. Lancaster,
This letter is to confirm the understanding of the arrangements for the objectives and terms of the upcoming auditing procedure for Apollo Shoes, Inc. Our firm is pleased to continue to work with your company and perform the audit of the year ending on December 31, 2011. Our PCA staff members would like to confirm the audit objectives, terms, limitations, and nature of the services provided for this engagement. The highlight of our services will cover auditing financial statements that include the income statement, balance sheets, statement of retained earnings, and the statement of cash flows. The financial audits will make sure that financial statements are presented according to General Accepted Accounting Principles (GAAP). Since investors, creditors, managers, and government agencies use these statements, it is very important for the auditor to ensure all financial statements conform to GAAP (Arens, Elder, & Beasley, 2006). The audit team will also examine and measure the operational performance by studying specific parts of the organization and evaluate the effectiveness and efficiency of operation activities on the financial statements. Our firm will gladly provide reasonable, but not absolute, assurance services that are performed by professional auditors to enhance the credibility of internal controls, IT systems, financial statements, compliance with regulation and human resource practices. Our auditors will express conclusion reports that will enhance the confidence of users,
Beginning the Audit Report
MEMORANDUM
TO: Larry Lancaster, Chairman, President, and CEO of Apollo Shoes, Inc.
FROM: Matrix Certified Public Accountants (MCPA) Inc.,
DATE: January 15 2012
SUBJECT: Beginning the Audit Report (Engagement letter, Engagement checklist, Outline of timeframes and milestones of the audit) Dear Mr. Lancaster,
This letter is to confirm the understanding of the arrangements for the objectives and terms of the upcoming auditing procedure for Apollo Shoes, Inc. Our firm is pleased to continue to work with your company and perform the audit of the year ending on December 31, 2011. Our PCA staff members would like to confirm the audit objectives, terms, limitations, and nature of the services provided for this engagement. The highlight of our services will cover auditing financial statements that include the income statement, balance sheets, statement of retained earnings, and the statement of cash flows. The financial audits will make sure that financial statements are presented according to General Accepted Accounting Principles (GAAP). Since investors, creditors, managers, and government agencies use these statements, it is very important for the auditor to ensure all financial statements conform to GAAP (Arens, Elder, & Beasley, 2006). The audit team will also examine and measure the operational performance by studying specific parts of the organization and evaluate the effectiveness and efficiency of operation activities on the financial statements. Our firm will gladly provide reasonable, but not absolute, assurance services that are performed by professional auditors to enhance the credibility of internal controls, IT systems, financial statements, compliance with regulation and human resource practices. Our auditors will express conclusion reports that will enhance the confidence of users,