Beginning the Audit – Apollo Shoes Anderson, Olds & Watershed, CPAs, LLC Phoenix, AZ 85210 October 15, 2012 Mr. Larry Lancaster Chairman, President & CEO Apollo Shoes 1 Shoeplace Shoetown, Maine 00001 Dear Mr. Lancaster, The Objective and Scope of the Audit of the Financial Statements You have requested that we audit the financial statements of Apollo Shoes Incorporated, which comprise the balance sheet as of December 31, 2012, and the related statements of operations, changes
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3 types of Audit : 1. Internal audit ( first party audit),to ensure implementing, maintaining and improvement of the system audited. 2.Customer audit ( second party audit), to evaluate the suppliers performance and compliance for standards. 3.External audit (third party audit), to ensure implementing and documenting according to standards. Audit Process Prevalent Audit Concerns Risk Assessment Process Definition of Internal Audit The audit process is generally a ten-step procedure
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here are 10 generally accepted auditing standards and are separated into three categories. 1. General Standards a. Auditor must have adequate training, experience, education and proficiency to perform the audit. b. Auditor must have the attitude of independence c. Auditor must exercise due professional care – with care and skill 2. Standards of Fieldwork d. Auditor must plan properly and supervise employees e. Auditor must understand entity and its environment…including
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Describe what you believe is implied by the term “engagement risk.” What are the key factors likely considered by Deloitte and other audit firms when assessing engagement risk? How, if at all, are auditors’ professional responsibilities affected when a client proposes a higher than normal degree of engagement risk? I believe that the term “engagement risk” implies that inherent client-specific risks face an auditor throughout the course of an audit, thus creating a risk that the auditor will be
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How safe is safe August 1, 2012 19:37 How Safe is Safe Identifiable Moral values of PPI PPI has a group of identifiable moral values. This is because above sourcing its external auditing, it has enormous consideration the heath of its workforce. This is pointed out in its conducive working conditions and its interior design. More so PPI has no injury records since its establishment thus proving its safety. With top priority on employees’ cleanliness, efficiency and order it shows that health
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http://www.academia.edu/9339215/CASE_STUDY_OF_THE_NORTH_FACE_INC._AUDITING_ Summary Founded in the mid-1960's by Hap Klopp, The North Face, Inc., was a premier supplier of high-quality hiking, camping, and outdoor gear. In July 1996, North Face's went public. Initially, it sold at $14 per share, then peaked at $30 per share. In March 1999, NASDAQ halted public trading of North Face stock following the company's announcement it would be restating financial statements due to "bad bookkeeping".Christopher
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replacement of AS2 by AS5 creates a natural experiment: the new regulation changed the audit approach prescribed in AS2 but left largely unchanged the institutional context of public company audits, including the attendant auditor liability regime. An analysis of the impact of AS5 is informative on at least two counts. First, it sheds light on the economic impact of regulation resulting from a political crisis. Second, AS2 and AS5 both specify standards for audits of internal controls over financial reporting
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CASE 1.6 NEXTCARD, INC. Synopsis In November 2001, Arthur Andersen & Co. employees in that firm’s Houston office shredded certain Enron audit workpapers during the midst of a federal investigation of the large energy company. The decision to destroy those workpapers ultimately proved to be the undoing of the prominent accounting firm. A few years later, a felony conviction for obstruction of justice would effectively put Andersen out of business. Ironically, at the same time that
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AC*411 Fall 2015 Professor Sheikh Your Name (TYPE with Last Name First e.g., SHEIKH, Aamer): _QUIJANO, Camila _____ BBGP Case 7.1 Ann Aylor, Inc. Determination of Planning Materiality and Performance Materiality Be sure to delete any notes to yourself and to proofread and spell check this document before you turn it in. Print out the entire document (single-sided), staple it, and bring it to class to turn in at the beginning of class on Thursday, November 19. I pledge that, outside
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Health Management, Inc. (HMI) is a pharmaceutical distributor founded by Clifford Hotte. In year 1995, the projected earnings per share of $0.54, of the company fall short of their expected earnings of $0.74. With this, Hotte decided to deceive their shareholders and asked their Chief Finance Officer (CFO), Drew Bergman, to manipulate their financial statement. They manipulated the information with regards to the ending inventory, and overstating it thereafter. The problem now arises on how they
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