Beginning the Audit Report

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Beginning the Audit Report Elena Terrell ACC 546 October 6, 2014 Eddie Loussararian October 6, 2014 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, This letter is to confirm and specify the terms of the upcoming audit of Apollo Shoes’ financial statements for fiscal year end 2012. This audit will include an opinion of fairness of the financial statements in material respect, financial positon, operations, controls and cash flow as set forth by the Generally Accepted Accounting Principles. The audit will begin with a review of the financial statements, organizational charts as well as the 2009, 2010 and 2011 state and federal income tax returns. The next step will be to identify risks and draft an audit plan. Once the audit plan is in place, an opening meeting can be scheduled to include senior management as well as staff involved in the audit. An opening meeting allows for the scope of the audit to be addressed. This will be a great opportunity to discuss with the auditors the areas that management has concerns about. The opening meeting is also a time when discussions of timing issues or deadline concerns should be addressed. Upon completion of the opening meeting, our auditors will finalize the audit plan and begin the process of beginning fieldwork. The field auditors will be scheduling meetings with staff to discuss pertinent information, reviewing procedure manuals, testing for compliance with company policies, laws and Generally Accepted Accounting Principles, assessing the adequacy of internal controls, learning business processes as well as determining the effectiveness of controls both internal and external. Billing of fees will be invoiced as stages of services are completed. Total fees will

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