...Auditing Introduction Letter To: Apollo Shoes, Inc. From: Lead Auditor Anderson, Olds, and Watershed (AOW) Date: March 30, 2015 Subject: Auditing and Other Assurance Services Available Dear Mr. Unum (Vice President of Finance), Last week you meet with Arnold Anderson, CPA (partner in charge of the audit), Darlene Wardlaws, CPA (engagement manager) and me Ashely Bishop (lead auditor) you discuss with us Apollo Shoes, Inc. decision in dismissing your current engagement with Smith & Smith auditing firm. At AOW we are glad you decided to bring us abroad. This letter will include information regarding the services that Anderson, Olds, and Watershed is able to provide to our clients as well as the professional standards that auditors must meet during audits. Also this letter will outline the ethical implications of an auditor during the audit. Auditing and Other Assurances Services Provided Arnold, Olds, and Watershed offers three different types of audits to our client’s operational, compliance, and financial statements audits. As stated in meeting last week ‘according to the Sarbanes-Oxley Act 2002, we will need to test the effectiveness of Apollo’s internal controls’ (Apollo Shoes Inc. case study). In order for our auditors to test effectiveness of the company’s internal controls will need to perform an operational audit. Operational audit evaluates the efficiency and effectiveness of any part of an organization’s operating procedures and models (Arens, Elder...
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...Auditing Introduction Letter University of Phoenix ACC 546 Auditing Introduction Letter To: Management of Apollo Shoes From: Martin & Associates, CPA Re: Auditing and Assurance Services Thank you for the opportunity to present the benefits and services that our firm offers. This letter is intended to explain the benefits of each option, our role in providing the available assurance services, and the qualifications required to meet the standard for the services offered. Martin & Associates has been serving our clients for ten years with a strong emphasis on the auditing and assurance services. Our firm takes pride in building trusting relationships, while performing an effective audit to aid in the success of our clients. First and foremost we must understand what auditing and assurance services are. According to Wikipedia, “The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project, or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.” When it comes to accounting audits are performed to establish the validity and reliability of information that is being reviewed, in addition to provide an assessment of the internal control system. The main goal of an audit is to express an opinion on the information that is being reviewed based on work that is being done on a test basis. Our firm’s...
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...Auditing Introduction Letter From: Langroodi, CPA To : Management of Apollo Shoes, Inc. RE: Auditing and assurance services Dear Mr. Jason, First, I would like to appreciate to giving me this opportunity to explain a couple points related to our firm and services, so then I’ll try to make them understandable and short as much as I can; because I know how valuable your time is. Langroodi CPA has proud to being in business for more than 15 years and we always tried to build a close and comfortable relationship with our clients. We have the most educated and trained personnel and high quality audit tools. Our audit approach is successful because it concentrates on understanding the clients' business and control issues, and combines diagnostic process, risk assessment, and audit testing procedures. My role in providing assurance is to ensure that there is sufficient audit evidence, to check the control present in the IT environment of your firm, testing control procedures, planning audit procedures, and assisting other auditors and experts. I check if the tests of controls have been properly completed and if substantive procedures have been carried out properly. At this time, I would like to explain some points regarding our services. First, I want to explain, what auditing means: “Auditing is the accumulation and evaluation of evidence about the information to determine and report on the degree of correspondence between the information and establish criteria”. ...
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...22851 Center Street Castro Valley, CA. 94546 May 6, 2013. Mr. Charles Apollo Shoes 123 Market Street Phoenix, Arizona 44444 Dear Mr. Charles, AUDITING INTRODUCTION LETTER I am writing this letter to introduce myself, my company, and the auditing and assurance services we can offer to Apollo Shoes. I will also discuss the benefits of our services as well as the role we will provide and the requirements for meeting the standards for the services we offer. Our firm has been in business for over 15 years and has the necessary expertise to provide your company with the related services. Auditing and Assurance Services Available According to Arens, Elder, and Beasley “auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria.” Also, an assurance service is an independent professional service that promotes the quality of information. These services are regarded as valuable because they come from an independent and unbiased professional. Although there are so many auditing and assurance services our firm provide, I would explain a few and the popular once we have. First we do have the audit of historical financial statements. With this type of service, the auditor will assert that the statements are fairly stated according to an applicable standard, for instance, the International Accounting Standard or the U.S. Standards. Such...
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...Auditing Introduction Letter Travis Alexander 8 June 2015 ACC/546 Eddie Professor Mr. Unum, I would like to first take the time to thank you for placing your trust in Anderson, Olson & Watershed, PLLC to perform the audit and assurance services for Apollo Shoes, Inc. While as a team we understand your organization has many needs that have been presented, we seek to exceed your expectations in our efforts and due care with consideration of your company’s goals of this process. There are a few items I would like to not only address for clarity but also to offer you and your colleague’s added peace of mind. To begin, Anderson, Olson & Watershed, PLLC offers an array of services that meet the needs of your firm. First, our audit team will conduct a systematic and independent examination of the company’s financial records including but not limited to the organizations books, accounts, documents, and any vouchers. This step is to measure and determine the truthfulness of the financial representation of the company as compared to the financial statements. Furthermore, in this review, our audit team will ensure the preparation of Apollo Shoes statements are properly maintained according to federal laws and regulations. We will use due diligence to gather the necessary materials, review, examine, and ultimately conclude with a decision based on our findings. In addition to the audit, we can offer many assurance services that will support the desired improvements...
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...Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Larry Lancaster, The purpose of this letter is to introduce our firm, Auditing and Assurance Services, LLC., and explain the auditing and assurance services our firm provides to our clients and their benefits. We make sure our clients are comfortable while we perform an effective and thorough audit on behalf of the firm. In addition to the information on the services we provide, I want to explain my role in providing the assurance services available, and provide a description of the requirements for meeting the standards for the services offered. Auditing and Assurance Services Auditing is defined as an unbiased accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Arens, 2012). Auditors ensure the fiscal accuracy and responsibility of organizations. Our firm offers three primary types of audit services: operational audits, compliance audits, and financial statement audits (Arens, Elder, & Beasley, 2012). During an operational audit, we provide evaluations on the efficiency and effectiveness of particular pieces of operating procedures and methods we are auditing (Arens, 2012). In operational auditing, the reviews are not limited to accounting and can include the evaluation of organizational structure, computer operations, production methods, marketing, and any other area in which the auditor is qualified...
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...Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited financial statements...
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...Auditing Introduction Letter Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited...
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... SHEHA KINE C14123650C CHAURURA EMMANUEL C14123699J MUBVIGWI BOTHWEL C14123427E RISIRO BRIAN T C14123638W PROGRAM BSCAC LEVEL 2.1 COURSE CUAC 202 QUESTION 1 Discuss in detail both the purpose and the contents of the engagement letter INTRODUCTION Before the commencement of an engagement it is in the interest of both the auditor and client that the auditor sends an engagement letter.The auditor should obtain the acknowledgement and agreement of management and where necessary those charged with governance that they understand their responsibility.The auditor should only accept to audit financial statements only when he concludes that the applicable framework is acceptable and the audit should be conducted according to the...
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...Overview of Auditing Standards Ethical Standards Ethical Standards (FRS, 2010) is issued by Auditing Practices Board. Its responsibilities are set up standards and guidance for auditing work. According to this standard, APB tries to enhance confidence on auditing process for public. ESs includes five requirements that auditors must adhere to and its primary objective is to give ‘true and fair’ opinions on financial statement. The credibility of audit opinions depends on the integrity, objectivity and independence of the auditor. Accordingly, it requires the quality of audit more stringent, especially the independence of auditors’ assurance. ES2 illustrates the guidance on some particular circumstances, which may generate threats to the independence and objectivity of auditors. ES3 states that senior positions have collaborated with audit engagement for a continuous period should be rotating. ES4 explains that there is no relationship between audit opinion and audit fees or other remuneration. ES5 shows that audit firm should consider whether non-audit service have significant effect on the threats to the auditor’s objectivity or independence. International Standards on Auditing ISA (FRS, 2009) copes with independent auditor’s overall responsibilities when implementing auditing process. These professional standards establish objectives of independent auditors together with explain the scope and nature of auditing process, which is designed to enable auditors to achieve...
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...that the independent auditor obtain written representations from management as a part of an audit of financial statements performed in accordance with generally accepted auditing standards and provides guidance concerning the representations to be obtained. Reliance on Management Representations .02 During an audit, management makes many representations to the auditor, both oral and written, in response to specific inquiries or through the financial statements. Such representations from management are part of the audit evidence the independent auditor obtains, but they are not a substitute for the application of those auditing procedures necessary to afford a reasonable basis for an opinion regarding the financial statements under audit. Written representations from management ordinarily confirm representations explicitly or implicitly given to the auditor, indicate and document the continuing appropriateness of such representations, and reduce the possibility of misunderstanding concerning the matters that are the subject of the representations. [Revised, March 2006, to reflect conforming changes necessary due to the issuance of Statement on Auditing Standards No. 105.]1 .03 The auditor obtains written representations from management to complement other auditing procedures. In many cases, the auditor applies auditing procedures specifically designed to obtain audit evidence concerning matters that also are the subject of written representations. For example, after the auditor...
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... | | |Auditing | Copyright © 2009, 2008, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students focus on the auditing practice performed by public accountants. Topics include the CPA profession and the auditor’s role, planning the audit, audit reporting and required communications, evaluating internal controls, audit programs for current assets and liabilities, and audit programs for other business cycles. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and assurance services: An integrated approach (11th ed.). New York, NY: Pearson. Hayes, R., Dassen, R., Schilder, A., & Wallage...
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...Auditing Introduction Letter Lissete Castrillon ACC/546 February 3, 2014 Allan Foster Auditing Introduction Letter Larry Lancaster Apollo Shoes Chairman, President & CEO February 3, 2014 Shoetown, Maine Dear Mr. Lancaster Through the following letter I would like to thank you for trusting our firm AOW in planning your upcoming audit. You are already familiar with the process and what we review during this procedure, like auditing financial statements which include income statements, balance sheets, statements of cash flows and retained earnings. But before we go into these, I would like to give you some information of what our firm has to offer. Some of the services that we provide in our firm are a variety of audits threaded to the need of each company. Operational audits will study specific areas of a company with the sole purpose of measuring its performance; this can be measured by relying on the effectiveness and efficiency of a determined area, for example the sales department. This type of audit will benefit the profitability of a company because it can find the weakest and strongest link of each area. Financial audits which is what we will be doing for Apollo Shoes, entails the auditing of financial statements, the purpose of this type of audit is to ensure that the company is preparing financial statement according to GAAP regulation. It is very important to be compliant with these principals because the information that is given is what investors...
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...Manufacturing Engagement Letter December 31, 2003 Dear David G., You have requested that we assess the Fraud Risk of Clearview Manufacturing using company backround, processes, and financial information. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of our expressing an opinion on the financial statements. The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles, the objective also includes reporting on: • Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts and grant agreements, noncompliance with which could have a material effect on the financial statements, in accordance with Government Auditing Standards. • Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts and grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Our audit will be conducted in accordance with generally accepted auditing standards established by the Auditing Standards Board (United...
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...Following are multiple choice questions recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board has provided the accompanying explanations. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams. 2007 AICPA Newly Released Questions – Auditing 1. CPA-05465 Which of the following categories is included in generally accepted auditing standards? a. b. c. d. Standards of review. Standards of planning. Standards of fieldwork. Standards of evidence. ANSWER: Choice "c" is correct. Generally accepted auditing standards include three categories: general standards, standards of fieldwork, and standards of reporting. Choices "a", "b", and "d" are incorrect, based on the above explanation. 1 2007 AICPA Newly Released Questions – Auditing 2. CPA-05466 A retailing entity uses the Internet to execute and record its purchase transactions. The entity's auditor recognizes that the documentation of details of transactions will be retained for only a short period of time. To compensate for this limitation, the auditor most likely would: a. b. c. d. Compare a sample of paid vendors' invoices to the receiving records at year-end. Plan for a large measure of tolerable misstatement in substantive tests. Perform tests several times during the year, rather than only at year-end. Increase...
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