Apollo Shoes Audit Letter

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Mr. Larry Lancaster, Chairman, President and CEO DATE Apollo Shoes Shoetown, Maine 11223 Dear Mr. Lancaster, This letter is to confirm the arrangement for the upcoming audit of Apollo Shoes. The audit will consist of auditing the financial statements to include the income statement, balance sheets, statement of retained earnings, and the statement of cash flows. As a follow-up I’d like to highlight the services my firm offers to clients like Apollo Shoes. Harris, Harris, and Associates provide operational, financial and compliance audits for clients various needs. 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). The information is important to investors, managers, banks,…show more content…
Assurance services are a “broad range of information enhancement services provided by CPA firms, [sic] such as ours” (Whittington & Pany, 2008, p. 2). The goal of an assurance service is for the CPA firm to issue a report about the reliability of an assertion made by the audited entity. There are four different categories of assurance services: audit of historical financial statements, effectiveness of internal control over financial reporting, review of historical financial statements, and other attestation services that may be applied to a broad range of subject matter (Arens, Elder, & Beasley, 2006, p.

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