...Recent Tutorials | G et Paid Topics Question $20.00 ACC 546 Week 3 - Individual Assignment: The Audit Report and Internal Control (Get your A by Help from Proven A+ Tutor) Found in Business: General-Business Chapter 1, # 0 Posted by : TutorXpress Rating (506):A+ Questions Asked: 0 Tutorials Posted: 2255, Earned: $49,213.14 Q: Week Three Audit Reporting and Required Communications · Identify characteristics of audit evidence. · Evaluate the appropriateness of an audit report for a completed audit. · Describe audit sampling methods for tests of controls and substantive tests of transactions. Course Assignments 1. Readings · Read Ch. 3, 7, & 15 of Auditing and Assurance Services: An Integrated Approach. 3. Individual Assignment: The Audit Report and Internal Control Evaluation · Resource: pp. 62–63 in Ch. 3 of Auditing and Assurance Services: An Integrated Approach · Evaluate the evidence provided by Apollo Shoes. · Decide how to structure the audit report for the provided evidence. · Compose an audit report reflecting the appropriate length, sections, and content for the provided information. · Include a description of the evidence, the accounting sampling and testing procedures used, and a brief description of the value of the audit report. You may use pp. 62–63 in Ch. 3 of Auditing and Assurance Services to complete this assignment. Tutorial $20.00 ACC 546 Week 3 - Individual Assignment: The Audit Report and Internal...
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...Apollo Shoes Letter ACC/546 University Of Phoenix Eric Unum Vice-President-Finance Apollo Shoes Inc. Dear Sir, It is our pleasure to introduce our firm as one with a professional and committed reputation in which proceeds us. Our firm offers exceptional audit and assurance tools, resources, and personnel to provide your company with highest quality of audit and assurance services available. We provide objective, reliable, and comprehensive auditing services, in which our staff of qualified auditors fully comply with. Our assurance programs are specifically designed to meet the needs of your company. We offer program assurance services that monitors and measures your company's system safety program and process to determine its effectiveness. Our firm is respected for our professionalism and commitment to providing high value services to our clients. I am a Certified Public Accountant (CPA) with over seven years of auditing field experience. In my position as the senior audit partner, my role in the audit will be to oversee the entire process. I will also ensure that there is sufficient evidence to check the present controls, test the controls, plan the audit procedures, and assist other parties involved, as needed. At any time during the audit, if any problems emerge you will be immediately notified and kept informed on issues throughout. It will be my responsibility to ensure that all auditors are performing their duties as expected during the entire audit process...
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...Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited financial statements...
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...Auditing Introduction Letter Lissete Castrillon ACC/546 February 3, 2014 Allan Foster Auditing Introduction Letter Larry Lancaster Apollo Shoes Chairman, President & CEO February 3, 2014 Shoetown, Maine Dear Mr. Lancaster Through the following letter I would like to thank you for trusting our firm AOW in planning your upcoming audit. You are already familiar with the process and what we review during this procedure, like auditing financial statements which include income statements, balance sheets, statements of cash flows and retained earnings. But before we go into these, I would like to give you some information of what our firm has to offer. Some of the services that we provide in our firm are a variety of audits threaded to the need of each company. Operational audits will study specific areas of a company with the sole purpose of measuring its performance; this can be measured by relying on the effectiveness and efficiency of a determined area, for example the sales department. This type of audit will benefit the profitability of a company because it can find the weakest and strongest link of each area. Financial audits which is what we will be doing for Apollo Shoes, entails the auditing of financial statements, the purpose of this type of audit is to ensure that the company is preparing financial statement according to GAAP regulation. It is very important to be compliant with these principals because the information that is given is what investors...
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...The Audit Report and Internal Control Evaluation University of Phoenix Michelle Melville Auditing/ACC 546 April 21, 2014 Professor Hillary Edmondson Auditor’s Responsibility for Detecting and Reporting Fraud It is the responsibility of the audit engaged in the audit process to detect material misstatement in management’s assertions. These material misstatements must also be properly reported. Arens et. al (2012) defined fraud as “…any intentional deceit meant to deprive another person or party of their property or rights” p 433. Fraud as it relates to financial reporting is the intentional misstatements of the company’s financial statements and the misappropriations of the company’s assets. In conducting the audit, the audit company needs to be able to identify whether the conditions for fraud, as indicated by Arenet. al (2012) exists. These conditions are; incentives or pressures, opportunities, and attitudes or rationalizations. The existence of certain factors help the auditor to identify whether the conditions for fraud exists. According to SAS 99 auditors are required to enter into the audit engagement with professional skepticism, a questioning mind, and must critically examine and evaluate audit evidence using audit procedures. In using professional skepticism the auditor must never assume the honesty or dishonesty with management reporting. The conditions for rationalization may cause even the most honest person to make allowances for committing fraud...
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...Auditing Introduction Letter University of Phoenix ACC 546 Auditing Introduction Letter To: Management of Apollo Shoes From: Martin & Associates, CPA Re: Auditing and Assurance Services Thank you for the opportunity to present the benefits and services that our firm offers. This letter is intended to explain the benefits of each option, our role in providing the available assurance services, and the qualifications required to meet the standard for the services offered. Martin & Associates has been serving our clients for ten years with a strong emphasis on the auditing and assurance services. Our firm takes pride in building trusting relationships, while performing an effective audit to aid in the success of our clients. First and foremost we must understand what auditing and assurance services are. According to Wikipedia, “The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project, or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.” When it comes to accounting audits are performed to establish the validity and reliability of information that is being reviewed, in addition to provide an assessment of the internal control system. The main goal of an audit is to express an opinion on the information that is being reviewed based on work that is being done on a test basis. Our firm’s...
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...Auditing Introduction Letter ACC 546 October 29, 2012 Theresa Robinson, CPA Auditing Introduction Letter October 29, 2012 University of Phoenix Auditing Introduction Letter From: Audit Services Firm LLC To: Apollo Shoes, Inc. Management RE: Auditing and Assurance services The firm specializes in many features of business risk services such as internal audit start-up, quality assurance reviews, internal audit, internal assurance services, control testing, compliancy with SOX regulations, information technology risk assessments, business risk consulting and assessment, ERM implementation, acquisition due diligence, and fraud investigations (Clifton, 2012). The firm offers the financial statement audit that looks for properly prepared and formatted financial statements in accordance to GAAP (Generally Accepted Accounting Principles), and provides validity of the information (Arens, Elder, & Beasley, 2012). Through this process the auditors will be looking to achieve a high level of assurance to reassure the confidence of management, board members, and investors. Auditors in the firm are experienced in the specified industry and have complete knowledge and familiarity with retail rules and regulations concerning aspect of accounting procedures. The firm has the responsibility to be versed in various payment settlement systems and other auditing tools. The audits...
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...Auditing Introduction Letter Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited...
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...Audit Report Charles Moore ACC 546 Deborah Fitzgerald Thomas To: Deborah Fitzgerald Thomas From: Charles Moore Date: March 19, 2012 Subject: Audit Report Our audit team has completed a review of Apollo Shoes, Inc. operations in conformity with the fiscal year 2006 audit plan. The objective of this review is to contribute to the improvement of risk management and the control systems within the business by identifying and evaluating exposures to risks and the controls designed by management to reduce those risks (Virginia Tech, 2005). Background As stated in the 10-K filings Apollo is a planetary distributor specializing in technology superior athletic podiatric products. The company’s brands are the SIREN, SPOTLIGHT, PHONESHOE, and SPEAKERSHOE. Apollo operates from a large office with operations and warehouse facility in the Shoetown, Maine area. The company’s products are shipped to large and small retail outlets in a six state area. Apollo has more than 100 employees organized in five departments headed by the vice presidents. It should also be noted that the company has recorded investment income in the amount of $945,713.51 from Apollo’s investment in Shock-Proof Socks – a company that has not issued any dividends as of the date of this statement. Scope The sampling methods used were both a non-probabilistic, judgmental, and a probabilistic sample process to determine the sample size. The direct sampling method was based on judgmental criteria from...
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...Auditing Introduction Letter Hector J. Mercado-Santiago Auditing – ACC/546 Rafael Marrero-Díaz 26 de marzo de 2011 Auditing Introduction Letter Para: Apollo Shoes, Inc. De: Anderson, Olds, and Watershed Estimado Apollo Shoes, Inc. Primero que nada quiero agradecerle la oportunidad brindada para explicarle algunos puntos importantes relacionados a nuestra firma y los servicios que brinda. También antes de comenzar nos gustaría explicarle que auditoria significa “la acumulación y evaluación de la evidencia sobre la información que determina y reporta sobre el grado de correspondencia entre la información y los criterios establecidos”. (Arens, Elder, Beasley, 2006). Anderson, Olds, and Watershed tiene un enfoque de auditoria exitosa, y como auditor de esta firma nos aseguramos de que hay suficiente evidencia para ser auditada, como comprobar el control presente del ambiente IT de la empresa, los procedimientos sobre prueba de controles, la planificación de procedimientos de auditoría, y ayudar a otros auditores y expertos. Nuestra firma ofrece servicios de auditoría y muchas garantías que son beneficiosas para la empresa. Estos servicios consisten en cuatro diferentes tipos de certificación que le dan un informe sobre la fiabilidad de una afirmación. 1. Auditoría de estados financieros históricos 2. La eficacia sobre el control interno sobre la información financiera 3. Revisión de los estados financieros históricos 4. Otros servicios de certificación...
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...Auditing Introduction Letter ACC/546 December 22nd, 2014 December 22, 2014 Anderson, Olds, and Watershed One Main Drive Seattle, WA 99304 Senior Vice President Research and Development Anderson, Olds, and Watershed One Main Plaza Ontario, CA 95112 Dear Apollo Shoes: I understand that environmental and energy-reduction concerns have been on your priority list for some time now. With rising energy costs and a slowing economy, I commend your efforts to explore additional ways Riordan Manufacturing can implement energy-saving programs and practices. As we have discussed over the past few weeks, Lunsford Environmental, Inc. has been providing consultation services to businesses just like yours for more than 20 years. With two decades of experience, our track record of saving costs speaks for itself. Clients of Lunsford Environmental have saved more than $250 million in energy costs. With this in mind, I am pleased that Lunsford Environmental has been able to develop a proposal that, once implemented, will add Riordan Manufacturing to our list of satisfied customers. Our tailored approach will help Riordan Manufacturing implement cost-effective and energy-saving practices that will increase your profits and reduce your environmental waste. Our staff of environmental experts and manufacturing engineers is confident, as am I, that our proposal will provide the best opportunities for your company to increase efficiency and reduce costs. The business...
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...Audit Design Program III Tonya Gaines ACC 546 March 4, 2013 Michael De Marco Audit Design Program III During phase III of the audit plan, Anderson, Olds & Watershed (AOW) will focus on two important cycles: Inventory and Warehousing Cycle and the Cash Cycle. There are six classes of transactions in the inventory and warehousing cycle: process purchase orders, receive raw materials, store raw materials, process of goods, and store finished goods and ship finished goods. Cash account is a part of every cycle except inventory and warehousing. Cash is primarily important and extremely vulnerable to fraud that is why auditor needs to be careful in the assessing risks in auditing cash account. Anderson, Olds & Watershed’s (AOW) responsibility is to conduct a fair and unbiased audit. We will conduct these tests and procedures according to PCAOB auditing standards. There is not absolute assurance that all misstatements or errors will be discovered. Inventory and Warehouse Cycle The audit of the inventory and warehousing cycle is designed to test inventory counts, processes and operations. The classes of transactions in this cycle includes sales, value of inventory, cost of goods sold, sales returns and allowances and estimates of allowance for slow moving inventory. The table below displays the interrelationship of the transactions related to audit objectives, tests of controls, and substantive test of transaction that should be approved during the...
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...Audit Process Letter Laura Sferra ACC/546 November 23, 2015 Allen Foster Mrs. Susan Right Senior Partner Anderson, Olds, and Watershed 1 Shoe Street New York, NY. 90001 Dear Mrs. Right, Mr. Lancaster, President of Apollo Shoes, has expressed his satisfaction with the services that our firm offers and would like to continue with a full audit. Because our client does not want our firm to talk to the predecessor auditor, I recommend accepting a prospective engagement after I perform an investigation by gathering information about our client's reputation and background. Client acceptance and continuance procedures are the foundation of the risk assessment process (SAS No. 8). Upon acceptance of our client, I am confident that we will be able to move forward under the AICPA auditing standards to determine that the financial reporting framework is appropriate. My objective is to plan the audit so that it is conducted efficiently and effectively, in accordance with Generally Accepted Auditing Standards. I will take into consideration the preliminary planning activities such as the client acceptance, ethical position of our audit firm and our understanding of the entity and its environment, including its internal control, to develop an effective and efficient overall audit strategy that will appropriately respond to assessed risks. Our engagement letter, will include the timetable of fieldwork, the scope and duration of...
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...Beginning the Audit Report Veronica Hemphill University of Phoenix ACC/546 July 9, 2012 Hemphill Financial Madison, Alabama 35758 July 9, 2012 Mr. Larry Lancaster President, Apollo Shoes 2501 Alabama Lane Phoenix, AZ 35404 Dear Mr. Lancaster: This will confirm our understanding of the arrangements for our audit of the financial statements of Apollo Shoes Inc. for the year ending December 31, 2012. We will audit the company’s financial statements for the year ending December 31, 2012, for the purpose of expressing an opinion on the fairness with which they present, in all material respects, the financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. We will begin the audit process upon reviewing the financial statements, organizational charts, and 2009-2011 federal and state income tax returns. Once the information is carefully reviewed, we will conduct a risk workshop primarily to identify key risks and raise risk awareness, draft an audit plan, and schedule an opening meeting. The opening meeting should include senior management and any administrative staff that may be involved in the audit. During this meeting, the scope of the audit will be discussed. You should feel free to ask the auditors to review...
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...Audit Program Design Part II ACC/546 January 31, 2011 At Anderson, Olds, and Watershed, we have developed the following test of controls, substantive test of transactions, and analytical procedures for the audit of the sales and collection cycle, the payroll and personnel cycle, and the acquisition and payment cycle of Apollo Shoe Company. The tests are consistent with generally accepted auditing methods in The United States of America. The tests will be designed to prove existence, completeness, and accuracy. Please take the time to look over the proposed tests and techniques and feel free to ask any questions regarding the tests that will be performed. Sales and Collection Cycle To test for existence, AOW will verify whether sales invoices are attached to the bill of lading or not and check to see if there are any invoices with unusual transactions or amounts. Next, we will check completeness by verifying the sequence of sales documents and trace the selected sales documents through the sales and collection process. We will also verify the prices of selected sale items and recompute the sales invoices that are billed to the customer for accuracy. The next step is to verify the classifications of sales transactions by examining the document package for internal verification and examining sales invoices for proper account classifications. The final audit objective test will consider timing. We will verify that sales are recorded on the correct dates. We will also verify...
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