Additionally, when auditing the financial statements, the auditor's judgment regarding matters that are considered to be material to users of financial statements is based on the consideration of the needs of user group as a whole. However, the past five years have been a struggle at Sportsman. Insurance Expense decreased by 95. Next year appears even better! Lancaster: This will confirm our understanding of the arrangements for auditing Apollo Shoes, Inc. The auditor should communicate with the management of his client. Lancaster requested that the check for the loan be made out him personally and that he would supposedly cash it and give it to his secretary. We look forward to the challenge.
Kline in our library for. Please use the enclosed envelope to return the form directly to our accountants. This is amount is pretty close to what Apollo is using for this account, the increase in Warranty Expense compared to Total Sales may have been a result of Apollo using a more relevant percentage amount for this account. Rather than catering to 18-22 year olds looking to find themselves, Sperling focused on the then-neglected market of working adults. Of the 51 deviations, 12 were due to incorrect pricing, three had incorrect quantities, and two had arithmetic errors. Noreproductionor distribution without the prior written consent of McGraw-Hill Education. .
Materiality is commonly assessed as a percentage of a key financial statement component. If you are not the intended recipient, you should delete this message and are hereby notified that any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. Our audit team has some experience with tax, but nothing past a basic level. While the Company denies any wrongdoing, the Company felt that the settlement would be preferable to a long litigation process. Propose the adjustments to the financial statements you believe necessary for Arnold to give the standard unmodified report on the Apollo Shoes financial statements.
This audit committee would oversees the audits, both internal and external. Sales credits are coded to three product line sales revenue accounts. Although sales were not as strong as we had anticipated, our marketing plans will allow us to bounce back next year. Will you need any staff help from us? Larry Lancaster Apollo Shoes Phoenix, Arizona 85003 Dear Mr. Are sales invoice blanks pre-numbered? Our primary concern with subsequent events is ensuring that any material events that could affect the fairness of the financial statements and disclosures are properly identified and disclosed with the rest of the client's financial statement information. Noreproductionordistribution without the prior written consent of McGraw-Hill Education.
We acknowledge our responsibility for the fair presentation of the financial statements in conformity with generally accepted accounting principles. Such costs are more easily altered in the short run and in some cases may not have significant long-term ramifications for a firm. The lack of appropriate credit approval has resulted in collection issues. While the Company denies any wrongdoing, the Company felt that the settlement would be preferable to a long litigation process. If Apollo goes ahead with making our suggested adjusting entry, the Bad Debt Expense account will show an increase of 979. Noreproductionordistribution without the prior written consent of McGraw-Hill Education.
In order for the lease to meet the final 2 requirements it must be a 7-year lease with a rate of 6% or higher. I have extensive background in retail industry. It is incorporated in this document by reference. We will also audit whether Apollo Shoes Inc. I am writing this letter to confirm our upcoming arrangement with Apollo Shoes and briefly introduce you to our company.
Please do not send your remittance to our auditors. You can think of the project as a puzzle, in which you have to fill in all the pieces. This is amount is pretty close to what Apollo is using for this account. Since they were able to provide world class medical service at affordable rates, this became a value for customers. Please do not send your remittance to our auditors. Unum further suggested that the promissory note plus accrued interest of 1% per year be due on June 30, 2051. Our sales are just running a little slowly this year, but we paidon the tenth, so quit hassling us! Are returned sales credits and other credits supported by documentation as to receipt, condition, and quantity, and approved by a responsible officer? Property and equipment Property is stated at cost net of accumulated depreciation.
Further investigation may either prove their legitimacy of these accounts or lead to the determination that fraudulent accounting is occurring. Noreproductionordistribution without the prior written consent of McGraw-Hill Education. Otherwise, total purchases for the year agreed with the customer's records. My preference is to place the audit programs at the beginning of each section. Our assurance programs are specifically designed to meet the needs of your company. I will have Karina Ramirez, our Director of Internal Audit, contact you to provide you with any other information that you need. The Company performs on-going credit evaluations of all of its customers and generally does not require collateral.
Words: 610 - Pages: 3. As we have discussed previously, we believe that our audit services will be a great benefit to your company. Several strategic objectives are formed to handle this shortcoming. If the balances have been left blank, please complete this formby furnishing the balance in the appropriate space below. We are pleased to confirm our acceptance and our understanding of this consulting engagement by means of this letter. Smalls Capella University Table of Contents Abstract……………………………………………. Writeoffs for the year were approximately the same.