Auditing Letter for Apollo Shoes, Inc.

Topics: Auditing, Financial audit, Audit Pages: 3 (842 words) Published: November 11, 2013

Auditing Introduction Letter to Apollo Shoes, Inc.
June 3, 2013
Apollo Shoes Inc.
100 Shoe Plaza
Shoetown, ME 00001
To the Board of Directors of Apollo Shoes, Inc.:
Thank you for choosing Anderson, Olds, and Watershed (AOW) to audit your company. It is an honor to present you with an introduction to our auditing and assurance services. It is the firm’s belief for our clients to understand our qualifications and the benefits to the services we provide before providing the services.

Three types of auditing services are provided by AOW. The first is an operational audit. Operational audits evaluate the efficiency and effectiveness of the company’s operating procedures and methods (Arens, Elder, & Beasley, 2012). The examination of a department, such as payroll, marketing, or production, takes place through this audit. It is sometimes looked upon as a consultation. The company may benefit from an operational audit by evaluating the techniques used in the different areas of the company. The second type of auditing service is a compliance audit. A compliance audit determines if the company is following the regulations set by higher authorities. It ensures the company is in compliance with requirements set by internal and external groups. The third type of auditing service is a financial statement audit. This type of audit examines if the financial statements are in agreement with accounting standards or a basis of accounting appropriate for the company (Arens, et al., 2012). As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes Inc. to submit audited financial statements as part of its annual 10-K filing. Financial statement audits are most likely to detect material misstatements.

Additionally, AOW provides assurance services to clients to improve reliability and relevance of information for decision makers. AOW has experience auditing and reviewing historical financial...

References: Arens, A. A., Elder, R. J., & Beasley, M. S. (2012). Auditing and assurance services: An integrated approach (14th ed.). New York, NY: Pearson/Prentice Hall. Retrieved from University of Phoenix Library.
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