The company’s total losses/expenses as management has estimated are $11 million. The total amount that the auditor might suggest would be about $18.6 million. This means that the materiality threshold is broken for materiality of misstatement of net income‚ even though as shown below‚ each entry itself does not break that threshold by itself. The deferred costs can be divided over the next 2 years. So this year’s entry would be as follows and there should be a disclosure note about the remaining
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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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Engagement Letter Apollo Shoes‚ This letter is to confirm our understanding of the terms and objectives of our engagement and the nature of the services we will provide. We will audit the consolidated balance sheet of Apollo Shoes as of year end 2007‚ and the related consolidated statements of operations‚ retained earnings‚ and cash flows. The objective of our audit is the expression of an opinion about whether your consolidated financial statements are fairly presented‚ in all material
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Similar to what you did with the Revenue Cycle‚ I want you to prepare a bridge working paper for the audit of Apollo Shoes as of December 31‚ 2007‚ listing the major errors that could occur in the purchasing system and to describe the test of controls procedures for auditing related purchasing controls to determine whether reliable control exists. I don’t think that Apollo has enough purchase transactions that we need to rely on the controls (in other words‚ we’ll look at them all)‚ but we need
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Design tests of controls‚ substantive tests of transactions‚ and analytical procedures for the following Apollo Shoes cycles: o Inventory and warehousing cycle o Cash cycle 1. Abstract‚ Inventory and warehousing cycle (tests of controls) YOLANDA 2. Intro‚ Inventory and warehousing (substantive tests of transaction) AMY 3. Conclusion‚ Inventory and warehousing cycle (analytical procedures) JUSTINIA 4. Cash cycle (Test of controls) ANNABELLE 5. Cash cycle (substantive tests of transactions
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205 - Produce Minutes of Meetings 1. Explain the purpose of different types of minutes and other meeting records Minutes are an official written statement of the motions and resolutions taken in a meeting. It is brief but a complete record of all discussions held with the members that attended the meeting. Minutes are also the official record of the proceeding of a meeting that should be needed to approve by the participating members of the meeting. An accurate written record of meetings is significantly
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to write meeting minutes What is the purpose of minutes? Minutes are written as an accurate record of a group’s meetings‚ and a record of decisions taken. They are useful because people can forget what was decided at a meeting if there is no written record of the proceedings. Minutes can also inform people who were not at the meeting about what took place. Who writes the minutes? It is normal practice for one person (minute taker) at each meeting to be given the task of writing the minutes. It may
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collections on large past-due accounts. e. Calculate an allowance estimate using prior relations of write-offs and sales‚ taking under consideration current economic events. Notes Receivable 5. Review the bank confirmations‚ loan agreements‚ and minutes of the board for indications of pledged‚ discounted‚ or assigned receivables. 6. Inspect or obtain confirmation of notes receivable. 7. Recalculate interest income and trace to the income account. 8. Obtain written client representations regarding
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considered evidence that the account is stated fairly. With the positive confirmations‚ we are trying to find information on account balances or specific invoices. We sent positive confirmations to Neutralizer‚ Mall-Wart‚ Run For Your Life Shoes‚ Paul Bunion Footwear‚ Sassy Shoes‚ and International Soccer Federation. We sent a negative confirmation to Tread. The ones that we sent a positive confirmation to‚ we were wondering about some discrepancies in the numbers and needed confirmation that payments were
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MEETING MINUTES OF PRE INCORPORATION MEETING DATE : FEBRUARY 17‚ 2015 (TUESDAY) TIME : 9.00 A.M. – 11.30 A.M. VENUE : Level 13A‚ Open Library. ATTENDEES PRESENT 1. Nor Hayati Binti Mustafa 2. Nur Adawiyah Binti Mat Rodzi 3. Nur Amalina Izati Binti Kamarul Bahren 4. Nur Atikah Binti Ahmad Zawawi 5. Nur Fatehah Binti Anuar 6. Nur Hafizah Binti Mazlam 7. Nur Hanani Binti Adrus 8. Nurul Jannah Binti Mohd Jamil 9. Nurul Nabilah Binti Mansor 10. Nurul Syahiroh
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