While evaluating Apollo Shoes‚ there are some areas of concern that are potential fraudschemes. The fraud can lead to the entire collapse/demise of the company if not corrected.These will also affect the share value and investor confidence. An overview of the process of investigation along with recommendations for the company.As with any company‚ revenue recognition is an important part of operations of a ApolloShoes. As stated in GAAP standards‚ revenue generated must be realistic and recognizable
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Apollo Shoes‚ Inc. Potential Problem Areas December 31‚ 2011 The following refers to the Comparative Trial Balances‚ GA-7.1 through GA-7.5: Accounts Receivable‚ Other Receivables‚ Allowance for Doubtful Accounts‚ Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence Prepaid Insurance and Insurance Expense Machinery‚ Equipment‚ and Office Furniture Accounts Payable Taxes Payable Line of Credit Sales‚ Sales Returns‚ Net Sales – Relationship to Inventory Research & Development
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to: Darlene wardlaw FROM: SUBJECT: CONFIRMATION REQUESTS DATE: OCTOBER 30‚ 2012 Two Forms of Confirmations We used both positive confirmations and negative confirmations. This is a required audit procedure by audit standards. Confirmations show existence and valuation of accounts and notes receivable. The positive confirmations are used to ask the customer to respond whether the balance is correct or incorrect. The negative confirmations ask for a response only if something
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Audit Program Design Part III for Apollo Shoes Crystal Spencer ACC/546 September 24‚ 2012 Deborah Fitzgerald Thomas Sloan and Spencer Auditing Firm during phase III of Apollo Shoes audit plan‚ we will focus in two key cycles‚ which are the following: inventory and warehouse cycle and cash cycle. It is important to understand that are six types of transactions in the inventory and warehouse cycles which are: receive raw materials‚ store raw
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ICC-1 Apollo Shoes‚ Inc. Internal Control Questionnaire Sales Transaction Processing December 31‚ 2007 Objectives and Questions Yes‚ No‚ N/A Comments Environment: 1. Is the credit department independent of the sales department? Yes. Credit manager in Treasurer’s office 2. Are sales of the following types controlled by the same procedures described below? Sales to employees‚ COD sales‚ disposals of property‚ cash sales and scrap sales. No available information‚ apparently not applicable
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ICC-Memo Apollo Date 10/14/12 Initials While working on some of the sales transactions 51 deviations were discovered. The majority 31 out of 51 were missing credit approval notations. Also 10 of these are still unpaid. This could indicate weak controls in the credit department which could leave the company with
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OBJECTIVES OF THE AUDIT ENGAGEMENT The objectives for the audit engagement are as follows: * to act as auditors of Ayala Land‚ Inc. and to express an opinion its consolidated financial statements in accordance with the requirements of the prescribed financial reporting framework; * to highlight key issues that have been of relevance in the forming of our audit opinions; * to serve as a framework for the audit; * to ensure that an effective and efficient audit is performed in
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as well as a file containing a memo of audit conclusions for the audit of the fixed asset cycle‚ and a memo on prepaid assets and other asset conclusions‚ as well as leadsheets for fixed assets and prepaid assets. Your memo contained excellent conclusions‚ including inconsistencies in the useful life of real property‚ computer equipment‚ and production equipment. You noted inconsistencies in depreciation method for various asset categories based on Apollo Shoes accounting guidelines. Regarding
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University of Phoenix December 10‚ 2012 Introduction Letter / Apollo Shoes From: Phoenix & Company PLLC (Certified Public Accountants) To : The Board of Director of Apollo Shores First I would like to thank the board of director of Apollo Shores for their recent inquiry about Phoenix & Company’s services. Since our firm is small‚ we offer a wide range of personalized services to clients at a reasonable cost. Phoenix & Company is a CPA firm with more the 25 years in the
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Relevant Information-Apollo Shoe GA-3 Information Relevant to 2011 Audit Audit Action Recommended Pressure to meet sales targets GA 3-1 Increase procedures related to existence of sales and valuation of receivables‚ as well as cutoff Purchase of equipment GA 3-1 Verify through invoices and receiving reports if equipment purchased during the year Verify terms of refinancing for accuracy as well as interest payments. Line of credit refinanced GA 3-1 Did they pay note on Jan. 1‚ 2012 or refinance
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