Our audits are conducted in accordance with auditing standards generally accepted in the United States and include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. Significant Customers Approximately 15%, and 11% of sales are to one customer for years ended December 31, 2013 and 2012, respectively. S-3 Sales Invoice: Location Keeping these forms locked mean that others cannot order products to a clients account without them knowing about it. Relationship between internal controls and the audit process; and 5. We hope that we have assisted your company and answered any questions about improvements to be made. External auditors also report the effect that the fraud may result with Apollo.
Due to the make-up of other assets and the fact that we will group these items together on the year- end Balance Sheet , we have created a separate lead schedule for Other Assets. In addition to other assurance services that we can provide to your organization. Spreadsheets would also allow us to quickly calculate totals and a variety of other mathematical functions in order to save time, ensure accuracy, and quickly make changes to data. Since you are unable to follow up directly with client personnel, you may need to rely on some evidence with which you may be uncomfortable. We plan the work to look for major errors and frauds in the accounts, but cleverly hidden schemes might not be discovered. Noreproductionordistributionwithout the prior written consent of McGraw-Hill Education.
Audit Committee Meeting: I have attached the minutes of an audit committee meeting that occurred last week. Please do not send your remittance to our auditors. I will have Karina Ramirez, our Director of Internal Audit, contact you to provide you with any other information that you need. You may want to talk to Karina Ramirez to get answers to the questions. While Apollo has a smaller operating space to maintain, they also had additional equipment. He noted that the cost of the commercial time rose approximately 10% from last year. This warehouse and distribution center is located approximately one mile from the Company headquarters and contains approximately 450,000 total square feet of usable space.
Your prompt attention to this request will be appreciated. Noreproductionordistribution without the prior written consent of McGraw-Hill Education. Look for patterns in errors that may indicate specific weaknesses over assertions. Review the adequacy of control over recording of all charges to customers completeness -audited in the sales transaction test of controls audit plan. In the memo, Briefly describe independent auditors' concept of materiality. Noreproductionordistribution without the prior written consent of McGraw-Hill Education.
The first is Invoice 39578 that was billed to Company B. Despite competition, though, Apollo Hospitals Madras remained a leader in the provision of top-quality medical care and had made a profit for 10 straight years. His attitude could be hiding or encouraging fraud in the company. Of these, two of the strategic objectives were assigned to Brooks, the Latino and African American markets. Many students will not think about including copies of the minutes with the review memo.
A company cannot be charged and given one invoice while the shipping department is given another with more product listed because they will have different numbered forms. Costain treasurer : This year, we want to add some work to theaudit. Noreproductionor distribution without the prior written consent of McGraw-Hill Education. Now Carmen's cousins need a financial report for operation. Words: 1067 - Pages: 5. We are pleased to perform the financial statement audit for Apollo Shoes, Inc. This is concerning, especially when taking into consideration that net sales decreased by 4.
We will conduct our audits in accordance with the standards of the Public Company Accounting Oversight Board United States. I hope this summary satisfies your needs. The Transfer Agent should be contacted on questions of changes in address, name or ownership; lost certificates and consolidation of accounts. Also, his bonuses are much larger than those of other board members. List the challenges facing the company using the classification provided in your text. This is the only occurrence among the deviations of Company B having been billed, but the company name itself is suspicious and seems unlikely to be legitimate. It will be my responsibility to ensure that all auditors are performing their duties as expected during the entire audit.
Common measure of materiality Financial statement measurements and information in some footnote disclosers are not usually presented in the most accurate amounts. This small staff cannot support all of the ideal division of duties that would provide the proper separation auditors desire among computer personnel. Since this is our first year on the engagement, you might want to check one of your old auditing textbooks for an example. Our auditors, Anderson, Olds, and Watershed,are making their regular audit of our financial statements. It is difficult to tell at this point how pervasive the potential fraud might be, but if it is occurring, top management would be most likely to be involved. The straight-line method of depreciation is reasonable for all of Apollo's fixed assets.
Unum Vice-President - Finance Sue D. The increased professional fees were primarily related to the settlement of litigation brought against us by a competitor. Although the audit is designed to provide assurance to detect error and irregularities that are material to the financial statements, it is not designed and cannot be relied upon to disclose all fraud or other irregularities. Lancaster: This letter is to confirm the understanding of the objectives for the financial statements audit for Apollo Shoes, Inc. Lancaster, Apollo Shoes has requested us to provide auditing services for your company. The third litigation is still ongoing, and while Apollo's lawyers believe that the suit has only a low chance of being successful, the amount that would be due if the suit is to succeed could be substantial.
Alternatively, you could look at the project as a murder mystery that needs a solution. When the previous recorded inventory was adjusted to match the physical count, the adjustment was to cost of goods sold. I am writing this letter to confirm our upcoming arrangement with Apollo Shoes and briefly introduce you… Problems In reviewing the case of New Balance Athletic Shoe, Inc. Due to the volume of overcharges, revenues and accounts receivable could be. Alternative Procedures Sometimes customers are not able to send a response. I will appreciate your having them ready when we start fieldwork in mid January.