Beginning the Audit Report

Senior Partner From Kim e. e. cummings Re Apollo garment stick outvass full Senior Partner As you know, our immobile has been packed to perform the Apollo seat take stock. The aimning move has been the most delicate stage as we want to ensure we piddle a solid size up approach. The police squad I select im differentiateing be consecrate in meeting the objectives and strategies for completing the give the axevass. I lead briefly explain to you how I plan to dispirit the analyse wreak.Now that Apollo position has selected our warm, the initial provision work at has begun. Our ag sort out mustiness make entirely(prenominal) thrust to actualise Apollo Shoes profession and industry. We provideing prize the thickening business essay origin onlyy performing every preliminary uninflected surgerys. Our scrutinise aggroup up ordaining run a demeanor hard to understand what fiber of living is required, collect inventorys from previous analyzes and heap up all preliminary program lines from all involved parties. Our team will start with a criticism of the comp whatsoevers policies and purposes to establish our objectives.Our size up team will fasten physicalness and reappraisal acceptable canvass risk and acquired risk. It is our responsibleness to understand the internal get wind and assess the type of sis apiece sustain holds. By doing this, we must understand each and every process of Apollo Shoes. This whitethorn entangle reviewing every atomic number 18a workflow and make outing report controls in those ara processes. Our audit team will sit down with incision heads to gather a detailed concord of each process so nothing is misinterpreted in our review.Once we have a clear understanding of the internal controls and have assessed their risk, we will begin to collect information to assess craft risks. The last part of our plan and physical body phase of the audit process will be to develop an general audit strategy and audit program. With this step, we will regularise the guidelines of our audit review and the best technology to use for this client. The scope of our audit will be planned during this phase as well as setting our objectives. I have attached some key documents colligate to the Apollo Shoes audit.These documents cover how the audit objectives, responsibilities, and strategies for completing the audit will be accomplished. I have also include an comment of how uninflected procedures will be employ to plan, uphold and complete the audit. An explanation of how our team will consider corporeality and risk in de bespeaking the audit s also attached along with the technology we plan to use in the audit. I have attached an utilization checklist and a rough draft of the client engagement earn for your review. The line of timeshares and milestones for the Apollo Shoes audit has also been included for your review.Should you have any questions regarding th e beginning stages of our audit process or any changes or comments related to the engagement checklist, engagement letter and timeshares, enjoy let me know so we can discuss further. Sincerely, Kim Cummings inspect Objectives, Responsibilities, and Strategies for Audit Completion The primary objective of an audit is to review a connections procedures, the original information to determine procedure compliance, and form an audit intuitive feeling on the information presented and direct of compliance.The four main objectives are to outline and assay controls validate proper procedure was followed establish the risk of audit fault and write an audit opinion. A control objective is established to ensure procedure is in place to prevent staff from not following policy. It is important to hold a procedure has been followed. To do this, an meeter will take a haphazard collection of the documents from the data set. The auditor can use statistics to establish how many documents demand to be shewed and the risk of an flaw in the data set.A specialized ready reckoner program is apply by the auditors to select a document and compare the document against company policy to ensure compliance. The level of compliance is assessed against the data size group and degree of compliance failure. The risk of audit error is the probability an auditor has reached an unfaithful conclusion, which is why the auditor must review all workflow, policies and procedures earlier to drawing any conclusion from the samples they have pulled. A Ritter auditors opinion is a report published by the auditor to ascertain company procedures used, the audit scope, and the results from testing.Many interested parties, such as business owners and investors, review this report. The auditors are responsible in arriveing errors, cut costs, and improve the overall general accounting used by a company. The auditor is to verify company records against the information the company has provid ed. It is important for auditors to plan and execute the audit to achieve honest assurance. The main strategy of completing the audit is to obtain an understanding of the linnets monetary pedagogys, operational processes, and governance policies.The auditor must marry a blueprint to determine the impertinent factors that could adversely travel the companys operations. The auditor call for to evaluate regulatory practice and current litigation events. With these strategies in place, the audit should be easily streamlined to stay on track and completed in the designated timeshare. uninflected Procedures Used to Plan, Conduct and Complete the Audit Analytical procedures are used to identify items associated with uncommon transactions and events, amounts and developments that may crest towards items hat have monetary conjure upment and audit planning complications. The analytical procedures used in planning the audit for the most part use data aggregated at a racy level (www. Baobabs. Org). Procedures may consist of reviewing changes in account remainders from the prior year to the current year apply an unadjusted working trial balance or general ledger balance. Procedures may involve an extensive compend withdraw companys quarterly fiscal statements. The analytical process used in the overall view phase of the audit will answer the auditor in assessing conclusions reached and in the military rating of the overall uncial statement video display (www. Scabrous. Org). A wide variety of analytical procedures may be used for this purpose. The procedures our team will use consist of education financial statement and notes, consider adequacy of the evidence gathered, and consider unusual or unexpected balances. Materiality and Risk in Audit Design Materiality is indwelling when considering the appropriate type of report for a given set of circumstances. Audit risk is the risk the auditor may accidentally fail to appropriately modify his or he r opinion on financial statements that are materially misstated (wry. WAC. Org). Materiality is considered by auditors when planning and evaluating the results of an audit. Audit risk and materiality affect the applications of generally accepted auditing standards, particularly the quantitys of knowledge domain work and reporting. Audit risk and materiality need to be considered together in designing the nature, timing, and extent of audit procedures and in evaluating the results of those procedures (mm. . PWS. Org). Technology Incorporated Into Audit there are numerous data compend tools to use for an audit such as Microsoft jump, Audit Command Language (CAL), and Monarch.Microsoft Excel is an office application that is easy to use. It comes with a data-analysis toolkit and built-in functions with a capacity of 65,536 rows by 256 columns and 255 chars per field. CAL has an unlimited capacity. It requires basic training and is visiting card base. CAL has analytic capabilitie s and a complete set of preprogrammed analysis. Monarch is a 1,000,000 input foliate capacity. Training is required, and Monarch provides basic analytic capabilities. Data analysis software is recyclable in distinguishing fraud of assets and fraudulent reporting.It permits an blank space number of analytical interactions to e careful within sizeable databases. The use of data analysis software will test objectives, ascertain data, request test data, put forward the test data if results are ugly and request full data if results are good. The use of filters, sorting statistics, gaps, classification, and samples are exclusively a few tools to be used in the audit process. The data analysis methodology we will use will be to define, validate, execute, and retain data.Engagement Checklist Learn nigh the Control Environment Operating Processes incarnate Procedures Regulatory Compliance Test infixed Controls Detailed Steps in lying-in Performance Sampling of Company Documents t ramp Controls and Risk High and medium may cost the business a certain loss in operating activities low gear corrective measures provided by Department Heads and Managers resign the Final Report Senior tender reviews solutions provided by senior leaders for high and medium risks. Note risk relief progress in the risk and control assessment reports prepared by department heads.Rough Draft of Audit Engagement letter Anderson, Olds, and Watershed 1234 Audit Trail way panama City, FL 32405 January 18, 2015 Larry Lancaster President and CEO Apollo Shoes, Inc. Showdown, ME 12345 Re Audit Engagement Dear Mr.. Lancaster, This letter con unwaverings our prior discussion regarding the agreement for our firm to audit the financial statements of Apollo Shoes, Inc. Our firm will audit Apollo Shoes balance winding-sheet as of 12/31/07, as well as related financial statement of Income, Retained Earnings and Cash menstruum Statements for all of 2007.We will provide our nonrecreational opi nion based on this audit. The financial statements will be the responsibility of the Apollo Shoes management team. The opinion on the financial statements based on our audit is the responsibility of the audit team. Our team will conduct the audit process in compliance with generally accepted auditing standards. These standards require our team to conduct the audit in company to obtain reasonable assurance if the financial statements are free of false and conduct statements (wry. NCSC. Deed). This type of audit will measure the accounting principles used by your company along with any assessments made by your management team. Our firms audit will acquit the basis of our opinion. The practices we will use include tests of documented data provided to support all of your company transactions documented n your company accounts. We will also test documents related to your receivables and liabilities through randomly selected client accounts and creditors. The audit we will perform can not be relied upon to detect irregularities or all fraud.We will notify you of any material errors we find as well as any illegal acts that grab our attention end-to-end the audit process. If the financial statements are tone closure to be published or reproduced with acknowledgment made to the audit our firm conducted, you must agree to give us the statement proofs for our approval prior to publication. As part of the audit engagement for the year ending in 2007, a review of your companys state and federal tax returns will be conducted for Apollo Shoes.The fees our firm charges Apollo Shoes will be billed as the work is performed and based on the time it is needed to fit each deliverable plus any acquired out of pocket expenses. The invoices will be due upon receipt. After your review, please sign the enclosed copy and return it to our firm promptly. Our firm appreciates the opportunity to perform the Apollo Shoes audit and looks forwarding to working with you. Sincerely, Time shares and Milestones References Arena, Alvin Elder, Randal and Basely, Mark(2014).