Apollo Shoes Audit Letter

Topics: Auditing, Financial audit, Audit Pages: 2 (603 words) Published: July 17, 2011
Mr. Larry Lancaster, Chairman, President & CEOJanuary XX, 20XX Apollo Shoes
Shoetown, Maine

Dear Mr. Lancaster,
This letter is to confirm our arrangements for our upcoming audit of Apollo Shoes. The audit will consist of auditing the financial statements to include the income statement, balance sheets, statement of retained earnings, and the statement of cash flows. As a follow up to our conversation, I’d like to highlight the services my firm offers its clients like yourself. Rahaman, Miguel & Co. provides operational, financial and compliance audits for your various needs. The operational audits study the specific parts of the organization with the purpose of measuring its performance. Performance can be measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The overall benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks, creditors and governmental agencies. Finally, the compliance audit studies whether the entity being audited is following specific rules or procedures set forth by a higher authority – usually governmental agencies but not always (Arens, Elder, & Beasley, 2006, p. 14). This type of audit is beneficial to an organization to ensure it is compliance with existing laws and to avoid potential unnecessary lawsuits. In addition to auditing, Rahaman, Miguel & Co., offers assurance services (also known as attestation services). Assurance services are a “broad range of information enhancement services provided by CPA firms, [sic] such as ours” (Whittington & Pany, 2008, p. 2). The goal of an...

References: Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and assurance services: An integrated approach (11th ed.). Upper Saddle River, NJ: Pearson Education, Inc..
Whittington, O. R., & Pany, K. (2008). Principles of auditing and other assurance services (16th ed.). New York, NY: McGraw-Hill Irwin.
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