Acc 546 Audit Report

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Audit Report and Program Design ACC/546 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Apollo Shoes, Inc. We have audited the accompanying balance sheets of Apollo Shoes, INC. as of December 31, 2014 and the related statements of income, comprehensive income, shareholders’ equity, and cash flows for the two years in the period ended December 31, 2014. We have also audited management’s assessment, included in the accompanying Management’s Report on Internal Control over Financial Reporting, that Apollo Shoes, Inc. maintained effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control – Integrated Framework issued…show more content…
The consultation involves a determination on whether financial statement reporting follows regulations and guidelines established in the Sarbanes-Oxley Section 404. The consultation also includes identity of internal risks detected within Apollo Shoes. A brief synopsis of our responsibility concerning the detection and reporting of fraudulent activity follows at the end of this engagement letter. Sarbanes-Oxley Section 404 An integral part of a financial audit includes an evaluation of the internal controls in the company's financial reporting. As an auditor, understanding and testing internal control over financial requires knowledge of standards applicable to the corporation established by GAAP or IFRS. Section 404 of the Sarbanes-Oxley Act requires mandatory reporting on internal controls by management and independent auditors. To obtain a system of internal control as mandated by Section 404 of the Sarbanes-Oxley, policies and procedures designed to provide reasonable assurance of the companies’ effort in achieving its objectives and goals. Committee of Sponsoring Organizations of the Treadway…show more content…
We are primarily concerned about controls over the reliability of financial reporting and the controls over classes of transactions, as the accuracy of the accounting system outputs depends on the accuracy of inputs and processing. We have significant responsibility for the discovery of material fraudulent financial reporting and misappropriation of assets, and must perform audit procedures to identify noncompliance with laws and regulations that may have a material effect on the financial statements. Internal controls, if properly designed and implemented, can be effective in preventing and detecting fraud. Therefore, we are concerned with Apollo’s internal control over the safeguarding of assets and compliance with laws and regulations if they affect the fairness of the financial statements. Although we are less concerned with controls that affect the efficiency and effectiveness of the company’s operations, we will pay attention to controls affecting internal management information, which is an important source of evidence that helps to determine whether financial statements are presented

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