Audit Program Design Part I
Resource: Apollo Shoes Casebook
Write an engagement letter for Apollo Shoes. Assume that Apollo
Shoes is a publicly traded company and that they have asked for SOX
Section 404 consulting. Include the following key points:
• Significant regulations and guidelines related to audits of internal
• Internal control risks identified within Apollo Shoes
• A description of the relationship between internal controls and the audit process
• A brief synopsis of your responsibility in detecting and reporting fraud
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From: Ragmen & Jensen Auditors, Public Accountants
Our Ref: 39/CBT/44
Date: September 20, 2013
The Members of the Board,
Apollo Shoes Inc.:
You have requested that we audit the financial statements of Apollo Shoes, Inc. which consist of the balance sheet as of December 31, 2013, statement of income, changes, in stockholders' equity, and cash flows for the year ended, and related notes to the financial statements. We are pleased to confirm our acceptance of this audit engagement. The audit will be done for expressing our opinion on the financial statements.
The responsibilities of the auditor:
We will carry out our audit in accordance with the generally accepted auditing standards in the United States. The standards require that we plan and conduct our audit to get reasonable assurance about whether the financial statements are free from material misstatement. We will be performing procedures to get audit evidence about the amounts and disclosures in financial statements. The procedures selected depend on the auditor's judgment and assessment of risk of material misstatements, and the related risks of fraud or error. The audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by the management.
Because of the inherent limitation of the audit with the ...
The response provides you a structured explanation of SOX 404 consulting in Apollo Shoes. It also gives you the relevant references.
Apollo Shoes Casebook
Identify potential financial statement fraud schemes by using the Apollo Shoes Casebook. Describe the types of evidence you would look for to determine whether fraud is occurring. Write a business brief of 1050 words that outlines how you will use the substantive procedures for detecting irregularities in cash, accounts payable, accounts receivable, inventory, fixed assets and payroll to analyze potential schemes in the Apollo Shoes Company.View Full Posting Details