Audit 1

Topics: Auditor's report, Auditing, Audit Pages: 4 (1365 words) Published: May 1, 2015
Engagement Letter:

Certified Public Accountants
Ocean City, Florida 33140

October 30, 2015

Mr. Donald Phillips, President
Oceanview Marine Company
36 Clearwater Lake Road
Ocean City, Florida 33140

Dear Mr. Phillips:

This letter is to confirm our understanding of the terms of our engagement as the auditors of Oceanview Marine Company for the year ended December 31, 2014.

We will audit the company’s balance sheet for December 31, 2014, and the related statements of income, retained earnings, and cash flows for the year then ended. The purpose of our audit is to form an opinion as to whether these statements are fairly presented in accordance with accounting principles generally accepted in the United States of America. We will review the company’s federal and state income tax returns for the fiscal year ended December 31, 2014. In addition, we will be available to consult with you concerning the tax effects of any transactions or changes in company policies.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of risk of material misstatement of financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting principles used by management, as well as evaluating the overall presentation of the financial statements. The purpose of the audit is to verify the validity of the financial statements through an independent process. Therefore, our audit team will be comprised of auditors that are not tied to Oceanview Marine Company and have not been for at least a year.

Our audit opinion will be based on our examination, made on a test basis, of your records, documents, assets, and equities. We will not examine all transactions, assets, or...
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