Audit Program Design: Apollo Shoes, Inc.

1360 Words6 Pages
Audit Program Design: Apollo Shoes, Inc. Acc 545 Monday April 8, 2013 Max Mullins Abstract An auditor’s objective when conducting audits is to ascertain and address the risks of material misstatement. In compliance with Auditing Standard No. 12, audits are tools and techniques designed and executed to examine, identify, and access such risks of material misstatements. Developing audit plans and strategies assists the auditor in determining essential engagement resources. Audit procedures provide overall substantiation to obtain relevant and reliable evidence and in most cases produce influential evidence that such misstatements are intentional. In the case of Apollo Shoes, Inc., presented in this audit design program, the auditor will also be required to have adequate industry knowledge and have researched Apollo’s environment. During the audit, Apollo’s internal controls will also be assessed with immense consideration. Audit Program Design: Apollo Shoes, Inc. Inventory and warehouse cycle Inventory accounts for a large portion of a company’s assets and is one of the more significant accounts presented on the financial statement. The effects of inventory can complicate physical control, contributing to more time spent when conducting the audit. For that cause, when constructing audit programs for inventory, the auditor should want to develop a plan such where risks are reduced to acceptable levels for the inventory cash cycle. Such a plan includes description of nature, extent of the planned risk assessment procedures, and above all, timing. In preparing the audit program for Apollo Shoe, Inc. the auditor should consider the primary objective which is to provide assurance to the stakeholders, stockholders, and other interested parties that the financial statements fairly account for raw materials, finished goods, work-in
Open Document