The Audit Report And Internal Control E

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The Audit Report and Internal Control Evaluation
Team D Auditing has been evaluating the evidence presented by Apollo Shoes. The audit team has developed an audit report in response to the audit and has also provided a description of the evidence, a description of the account sampling and testing procedures used, and has also given a brief description of the value of an audit report. This report is only to reflect Team D’s opinion regarding Apollo’s internal controls, financial statements, and management’s assessment.
Management Responsibilities
We have audited the financial statements of Apollo Shoes Inc., including the balance sheet, income statement, and statement of cash flows. The company’s management is responsible for
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However, we are confirming the efficiency and effectiveness of the internal control, based on COSO framework. It is important to mention that Apollo Shoes has a litigation suit in the preliminary stage for $12,000,000, which intend to defend them self. It is reasonable that the loss could reach $10,000,000 after legal fees (Louwers, 2007). No adjustments have been made to the financial statements. Since Apollo has lost his major customer, this has raised a substantial doubt about the ability that Apollo Shoes Inc. can continue as a going concern. The financial statements do not include any adjustment that contemplates this uncertainty.
Description of Evidence The evidence used for the audit included several items presented by Apollo Shoes. The team was presented with the SEC 10-K filing from 2006, as well as the minutes from the audit committee meeting. The team also reviewed the company Letter to the Shareholders. The SEC filing provided us with historical financial statements and a wealth of other information about the company, including quarterly unaudited operation results. The team also reviewed the company accounting and control procedures manual to evaluate the controls over the accounting functions of the

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