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Beginning the Audit – Apollo Shoes

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Beginning the Audit – Apollo Shoes

Anderson, Olds & Watershed, CPAs, LLC
Phoenix, AZ 85210
October 15, 2012

Mr. Larry Lancaster
Chairman, President & CEO
Apollo Shoes
1 Shoeplace
Shoetown, Maine 00001

Dear Mr. Lancaster,
The Objective and Scope of the Audit of the Financial Statements
You have requested that we audit the financial statements of Apollo Shoes Incorporated, which comprise the balance sheet as of December 31, 2012, and the related statements of operations, changes in equity and cash flows for the year end, and the related notes to the financial statements. We are please to confirm our acceptance and our understanding of this audit engagement by means of this letter.
Our audit will be conducted with the objective of our expressing an opinion on the financial statements.
The Responsibilities of the Auditor
We will conduct our audit in accordance with auditing standards generally accepted in the United States of America. The standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Because of inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS. Also, an audit is not designed to detect errors or fraud that immaterial to the…...

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