The operational audit studies the specific parts of an organization with the purpose of measuring its performance. Performances are measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP).
Larry Lancaster Chairman, President, and CEO Apollo Shoes, Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Larry Lancaster: I am excited for the opportunity to do business with you and your company, Apollo Shoes. The purpose of this letter is to explain the services that my firm has to offer as well as listing the great benefits these services will be to your company. I will discuss the responsibility to follow regulations measurements. It will also explain my role in servicing my audit clients. There are three specific types of audits that my firm has to offer.
October 25, 2014 Mr. Larry Lancaster, President, CEO, and Chairman of the Board Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Thank you for the opportunity of being in-charge of the upcoming audit of your company Apollo Shoes, Inc. I want to reassure you I will be a great asset to you and your team, and you can depend on Anderson, Olds, and Watershed, CPA (AOW). I understand you are going through some possible legal issues with the previous auditing firm and neither I nor my firm will contact them. This purpose of this letter is to confirm and understand what Apollo Shoes, Inc can expect from me throughout the audit. The service you will receive will objective and independent with a respect to keep responsibilities functions
The audit for the financial statements will include evidence supporting amounts and disclosures in statements, examining, accounting principles used assessment, estimates made by management, evaluating all of the financial statements overall. The internal control over financial reporting audit will be acquiring an understanding of internal control over financial reporting, evaluating and testing the design and operation of the effectiveness of internal control and conducting procedures as necessary. The internal control over financial reporting within a company is meant to provide a reasonable assurance as to the reliability of financial reporting and for the preparation of the financial statements for external purposes in accordance to the generally accepted accounting principles
I personally believe that the culture of ethics and integrity in all we do begins with every leader and each associate. We have a proud, rich heritage that must never be compromised by inappropriate conduct. (Schrimsher, 2014) Above are two statements from CEO’s to their employees. The first one is a statement in a letter from Kenneth Lay, CEO of Enron to his employees about conducting business affairs in a moral and honest manor. The second is a statement to the employees from the CEO of the company that I will begin working for January 31, 2014, Applied Industrial Technologies.
Ethical Perspectives - Cross-Cultural Perspectives Vina Baptiste ETH 316 March 4, 2013 G. Edward McCullough Ethical Perspectives - Cross-Cultural Perspectives The Global Company I chose to research as a global organization is PricewaterhouseCoopers, known in the United States as PwC. I will identify ethical perspectives in this global organization and compare the ethical perspectives across cultures that are involved in this global organization. This company delivers assistance in quality assurance, advisory services, and tax. The company consists of a network of firms that offer these services. This network thrives on helping large and small companies to reach independent strength by showing in many ways how to survive form business to cultural and ethical diversity.
The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time. Because Ratio Analysis is based upon Accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further Profitability.
688). The perpetual inventory master files are tested by an examination of documents that support additions and reductions of inventory amounts in the master files. This is done by examining raw materials that are added and reduced for use in production, the growth in finished goods inventory when goods have been manufactured and the decrease when finished goods are sold (Arens, Elder, & Beasley, 2012). The accuracy of perpetual inventory master files are relatively easy to test once the auditor concludes the competence of the intention and enactment of inventory internal controls and the associated level of assessed control
Auditing Introduction Letter Justin A. Miller ACC 546 Monday, November 19, 2012 Instructor: Scott Phillips Auditing Introduction Letter To: Apollo Shoes, Inc. From: Miller Consulting Apollo Estimated Shoes, Inc. First, I want to thank you for the opportunity to explain some important points related to our firm and the services it provides. Also before we would like to explain that audit means "the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria." (Arens, Elder, Beasley, 2006). Anderson, Olds, and Watershed has a successful audit approach, and as auditor of this firm we ensure that there is enough evidence to be audited, as this control testing of enterprise IT environment, test procedures
Taylor Swift, CPA Senior Auditor Anderson, Olds, and Watershed, CPAs 1234 W. Elm Street Shoetown, Maine 04003 December 10, 2012 Mr. Lancaster Chairman, President and CEO Apollo Shoes, Inc. 5637 E. Birch Street Shoetown, Maine 04003 Dear Mr. Lancaster: Thank you for choosing Anderson, Olds, and Watershed, CPAs for your auditing and assurance service needs. We are confident that you will be very satisfied with our company has to offer. Our firm specializes in assurance services, although we also offer non-assurance services. “An assurance service is an independent professional service that improves the quality of information for decision makers. Such services are valued because the assurance provider is independent and perceived