Beginning the Audit Report
Beginning the Audit Report
Kimberly Cummings
ACC/546
January 19, 2015
Jacob Mathews
Beginning the Audit Report
MEMORANDUM
January 19, 2015
To: Senior Partner
From: Kim Cummings
Re: Apollo Shoes Audit
Dear Senior Partner: As you know, our firm has been selected to perform the Apollo Shoes audit. The planning process has been the most delicate stage as we want to ensure we have a solid audit approach. The team I select will be dedicated in meeting the objectives and strategies for completing the audit. I will briefly explain to you how I plan to begin the audit process. Now that Apollo Shoes has selected our firm, the initial planning process has begun. Our team must make every effort to understand Apollo Shoes’ business and industry. We will assess the client business risk before performing any preliminary analytical procedures. Our audit team will work hard to understand what type of documentation is required, collect documents from previous audits and gather all preliminary statements from all involved parties. Our team will start with a review of the company’s policies and procedures to establish our objectives. Our audit team will set materiality and review acceptable audit risk and acquired risk. It is our responsibility to understand the internal control and assess the type of risk each control holds. By doing this, we must understand each and every process of Apollo Shoes. This may include reviewing any area workflows and identifying key controls in those area processes. Our audit team will sit down with department heads to gather a detailed understanding of each process so nothing is misinterpreted in our review. Once we have a clear understanding of the internal controls and have assessed their risk, we will begin to collect information to assess fraud risks. The last part of our plan and design phase of the audit process will be to develop an overall audit strategy and audit program. With this step, we will determine the
Kimberly Cummings
ACC/546
January 19, 2015
Jacob Mathews
Beginning the Audit Report
MEMORANDUM
January 19, 2015
To: Senior Partner
From: Kim Cummings
Re: Apollo Shoes Audit
Dear Senior Partner: As you know, our firm has been selected to perform the Apollo Shoes audit. The planning process has been the most delicate stage as we want to ensure we have a solid audit approach. The team I select will be dedicated in meeting the objectives and strategies for completing the audit. I will briefly explain to you how I plan to begin the audit process. Now that Apollo Shoes has selected our firm, the initial planning process has begun. Our team must make every effort to understand Apollo Shoes’ business and industry. We will assess the client business risk before performing any preliminary analytical procedures. Our audit team will work hard to understand what type of documentation is required, collect documents from previous audits and gather all preliminary statements from all involved parties. Our team will start with a review of the company’s policies and procedures to establish our objectives. Our audit team will set materiality and review acceptable audit risk and acquired risk. It is our responsibility to understand the internal control and assess the type of risk each control holds. By doing this, we must understand each and every process of Apollo Shoes. This may include reviewing any area workflows and identifying key controls in those area processes. Our audit team will sit down with department heads to gather a detailed understanding of each process so nothing is misinterpreted in our review. Once we have a clear understanding of the internal controls and have assessed their risk, we will begin to collect information to assess fraud risks. The last part of our plan and design phase of the audit process will be to develop an overall audit strategy and audit program. With this step, we will determine the
References: Arens, Alvin; Elder, Randal; and Beasley, Mark(2014). Auditing and Assurance Services with ACL Software CD (15th ed). Prentice Hall. Lanza, Richard B (1999). 101 ACL Applications: A Toolkit for Today’s Auditors. Global Audit Publications. North Carolina University (2014). Retrieved from http://www.ncsu.edu/unity/AU Section 312. PricewaterhouseCoopers (2014). Retrieved from www.pwc.org. Public Company Accounting Oversight Board (2013). AUSection 329A. Retrieved from http://pcaobus.org/standards/auditing/pages/AU329A.aspx.