Beginning The Audit Report A Essay

ASC 410-20-25-8 indicates that an asset retirement obligation is estimable if all of the following exist:

Anderson, Olds, and Watershed rely on Apollo Shoes management for the financial statements. In addition, Apollo Shoes management is responsible for internal control over financial reports, ensuring the company complies with applicable laws and regulations, providing all financial records and other related financial information to the firm, and providing a representation letter at the conclusion of the audit confirming management’s

We have audited the accompanying balance sheets of Apollo Shoes, Inc. as of December 31, 2008, and the related statements of income, comprehensive income, shareholders’ equity, and cash flows for the year ended, and related notes to the financial statements. We have also audited management’s assessment, included in the accompanying Management’s Report on Internal Control Over Financial Reporting, that Apollo Shoes, Inc. maintained effective internal control over financial reporting as of December 31, 2006, based on criteria established in

35. The auditor is obligated to report significant deficiencies in the control structure discovered during an audit to the audit committee or its equivalent.

We will need your help to ensure this audit meets our standards. We will need your staff to accommodate AOW with any financial documents we may need for the audit. We know you are limited on staff time and should be able to accommodate your request for federal and state tax return preparations, but we must receive approval from the audit committee prior to performing both the audit and the tax work.

The auditor should also obtain the next year’s minutes, probably for February 2006, to make sure the previous minutes referred to were those from September 16, 2005. Additionally, the auditor will request the client to include a statement in the client representation letter stating that all minutes were provided to the auditor.

Corporate responsibility for financial report: Section 302 mandates the CEO and CFO to certify in every annual or quarterly report that officers audit the report and also the report does not incorporates any null or omission material fact that made the statement misleading. Additionally, the statement fairly present in all material aspects of the financial condition and the outcome of operations. CEO and CFO are signing, will be in charge of setting up and keeping up the internal control. The officers needed to disclose to the auditors and the audit committee of the board of administrators all significant delinquent in control, that favorable have an effect on by the method, summarize, and report disclose any fraud, either material or immaterial that concerned employees or managements who play a significant role in internal controls.

The paramount onus of an auditing professional is conveying reliable information to clients and the public so that they may make imperative, intellectual decisions. For this obligation to be fulfilled, a quality audit must be performed in accordance with generally accepted auditing standards (GAAS). Executing a quality audit necessitates an auditor reasonably assures financial statements are presented fairly in accordance with generally accepted accounting principles (GAAP) and not materially misstated, whether due to errors or fraud. Furthermore, executing a quality audit obliges an auditor to utilize professional skepticism by exercising proficient judgment and proves competency in accounting principles and professional auditing

The directors have pleasure in submitting their report together with the audited financial statements of the Company for the year ended 31 December 2010.

Prior to preparation and execution of this engagement letter, we discussed with you the fact that we provide clients with services specifically focused on identifying and addressing weaknesses in internal controls, and on searching for the existence of fraud within your company. We further explained the additional costs associated with such different levels of service. After consideration of such services, you have informed us that you wish to retain us to perform only the audit services described in this

The audit report is the final step in the entire audit process. The reason for studying it now is to permit reference to different audit reports as evidence accumulation is studied throughout this text. These evidence concepts are more meaningful after you understand the form and content of the final product of the audit. We begin by describing the content of the standard auditor’s report.

As mentioned before, we can observe from the plots that the GDP level is upward trending, which is a characteristic feature of economic time series. To offset this, we calculate the first differences as a change in logs. Once plotting the vector of the results, another characteristic of economic time series arises in the plot of GDP growth: seasonality. This can be seen in quarterly variations year on year, for example quarter four of each year cannot be purely compared to quarter two since it accounts for a big holiday variation such as Christmas spending, end of year boosting of financial results, etc. Thus growth should be assessed with the corresponding quarter year on year. This effect compensates the business cycles variations which are more significant for

In this situation, scope limitation on accounts receivable audit is created because auditors are unable to obtain sufficient appropriate evidence using alternative procedures. Thus, if the amounts of wrong account receivables are material but not pervasive, the auditor can issue qualified opinion. If the scope limitation if pervasive, meaning the amounts of this prohibition are very large, the auditor should issue disclaimer of opinion. When the amounts involved are immaterial, the auditor can issue unqualified report.

Team C analyzed the accounts payable, accounts receivable, payroll, and inventory systems for Kudler Fine Foods. Kudler would now like to see a proposed audit schedule for these systems. The team will distinguish between the types of audits that may use for each process. The team will also recommend the most appropriate audit for each process and explain how to conduct the audits. Identifying events that may prevent reliance on auditing through the computer will also be presented to Kudler for review (Apollo Group, 2009).

The auditor MUST communicate in writing, any discovered significant deficiencies and material weaknesses to management and those charged with governance. (Page 210)