Beginning the Audit Process

1196 Words5 Pages
Beginning the Audit Report Peter Serunjoji ACC546 January 15, 2012 Arlette Peoples Beginning the Audit Report MEMORANDUM TO: Larry Lancaster, Chairman, President, and CEO of Apollo Shoes, Inc. FROM: Matrix Certified Public Accountants (MCPA) Inc., DATE: January 15 2012 SUBJECT: Beginning the Audit Report (Engagement letter, Engagement checklist, Outline of timeframes and milestones of the audit) Dear Mr. Lancaster, This letter is to confirm the understanding of the arrangements for the objectives and terms of the upcoming auditing procedure for Apollo Shoes, Inc. Our firm is pleased to continue to work with your company and perform the audit of the year ending on December 31, 2011. Our…show more content…
Our team demands that the management provide us with all financial records and related information. We will require that your management team provide us with a letter to confirm management responsibility for the preparation of a financial statement in conformity with GAAP and provide all information necessary in a timely basis for our audit process. The timing of the auditing process and the schedules are listed below for your review. The timely completion of this work will be at the end of our audit work. Our firm’s fees of the auditing process are to be estimated on a base of hourly rates. Our initial estimate of total fees, $250,000.00, will be billed as work progresses. In the case of unusual circumstances, the fees may be adjusted to the new expansion of the engagement. Unless terminated, amended or otherwise superseded, this letter remains effective for the future years. If your company agrees to the terms and conditions of this engagement, we would like to ask you to sign this letter and return it to us and keep a copy for your references. We appreciate providing you with our services. Accepted: Sincerely Acknowledged on behalf of Apollo shoes Company By: ________________ Name and title Date: ______________ Audit/Engagement
Open Document