Beginning the Audit Report 2 
Beginning the Audit Report
ACC/546 Auditing
January 12, 2015
Beginning the Audit Report
January 12, 2015
Mr. Arnold Anderson
Anderson, Old, and Watershed, CPAs, LLC
Shoetown, ME 00001
Dear Mr. Anderson:
This is letter is to inform you of the plans for the beginning of the audit process that we plan to take to complete the audit of Apollo Shoes. There are many parts to the process and we will discuss each within this letter. The beginning of the audit process is to describe the objectives of the audit, and the responsibilities and strategies to complete the audit.
The primary objective of the audit is to issue an opinion on the financial statements of the company. With this opinion, the users of the financial statements are able to know that the financial statements are presented fairly and in accordance with the Generally Accepted Accounting Principles. “An auditor’s opinion enhances the degree of confidence that intended users can place in the financial statements” (Arens, Elder, & Beasley, 2014). If the statements are not fairly stated, then we will notify all users with the report.
Next are the responsibilities of the management and the auditors. Management is responsible for many things from ensuring that internal controls are in place, fraud risks are identified, and effective governance is established (University of Nebraska-Lincoln, 2015). With these responsibilities accomplished, the users have assurance that the financial information is reliable. The auditor’s main responsibility is to detect any material misstatements that may have been found within the financial statements. The auditor will use the Generally Accepted Auditing Standards as a framework for the audit.
Some strategies for completing the audit are first to obtain sufficient evidence to support all of the information given and the assertions of management about the financial statements. Also before the audit is even completed, “the auditor must have a thorough
ACC/546 Auditing
January 12, 2015
Beginning the Audit Report
January 12, 2015
Mr. Arnold Anderson
Anderson, Old, and Watershed, CPAs, LLC
Shoetown, ME 00001
Dear Mr. Anderson:
This is letter is to inform you of the plans for the beginning of the audit process that we plan to take to complete the audit of Apollo Shoes. There are many parts to the process and we will discuss each within this letter. The beginning of the audit process is to describe the objectives of the audit, and the responsibilities and strategies to complete the audit.
The primary objective of the audit is to issue an opinion on the financial statements of the company. With this opinion, the users of the financial statements are able to know that the financial statements are presented fairly and in accordance with the Generally Accepted Accounting Principles. “An auditor’s opinion enhances the degree of confidence that intended users can place in the financial statements” (Arens, Elder, & Beasley, 2014). If the statements are not fairly stated, then we will notify all users with the report.
Next are the responsibilities of the management and the auditors. Management is responsible for many things from ensuring that internal controls are in place, fraud risks are identified, and effective governance is established (University of Nebraska-Lincoln, 2015). With these responsibilities accomplished, the users have assurance that the financial information is reliable. The auditor’s main responsibility is to detect any material misstatements that may have been found within the financial statements. The auditor will use the Generally Accepted Auditing Standards as a framework for the audit.
Some strategies for completing the audit are first to obtain sufficient evidence to support all of the information given and the assertions of management about the financial statements. Also before the audit is even completed, “the auditor must have a thorough
References: Accounting Simplified. (2013). Audit Riskes & Business Risks. Retrieved from http://accounting-simplified.com/audit/risk-assessment/audit-risk-business-risk.html Arens, A University of Nebraska-Lincoln. (2015, Winter). Management 's Responsibilities. Retrieved from http://audit.unl.edu/managements-responsibilities Engagement Checklist, Timeframes and Milestones