Beginning The Audit Report Essay

I would like to thank you for vesting your confederation and trust in our firm to be your canvasors. In this letter an explanation of the general c each(prenominal) and the answer of our scrutinise leave be defined. This is only an educational purpose letter and is not an parallelism.THE AUDIT PROCESSAn audit is an query and review of companies financial statements. The examination is performed with a view to portray an opinion of whether the companies financial statements prove a true and fair statues of the comp both. Auditing the moivities of the fraternity volition be planned, executed by rights and thoroughly reviewed to assure that all statements are in compliance with laws and regulations. The next is the surgical procedure as to which our firm bequeath be conducting the auditWe save a strict lymph glandele screening process, once the screening process of the company is concluded and confirms that youre company is an acceptable customer we go out proce ed with the next step in the process.Once the screening process is passed we might need to contact the companies antecedent attendee and have agree consent from them to proceed. If the previous auditor does not consent or if your company does not allow us authority to contact he previous audit our firm go out not perform the audit in your company.After all consents have been curbn thither go forth be an audit engagement letter that testament be issued to your company, which would represent the agreement between your company and our firm. The agreement would give the fundamental basic terms of the way the audit will be performed and what expectations of the firm and company will be.Once your company receives the engagement letter, all data will be equanimous from your company and the environment. The information collected will allow us to identify problem areas from prior audits.When all data is ga thered we will complete a risk assessment of the company so that the take up a udit approach whitethorn be selected.For low risk companies we may test controls to analyze whether or not the companies internal controls are functioning followed by a smaller set of substantive testing.If the company is mellowed risk your internal controls are weak, we would will rely heavily on substantive testing in order to make sure that there is no misstatements in the companies accounts.Whichever approach is chosen the analytical process during unalike parts of the audit will be the same.Once the main acidulate is completed we will review the audited work and bring forth any issues to you that have risen from the audit work.When the issues are resolved (if any), the audit announce will be issued. This would conclude our audit process on the companies accounts and statements for the year. machine-accessible you will find other documents which will give you a break up understanding of the audit process. enliven if you have any questions please spirit let loose to writ e to us.Thank you,The auditors._Attachments_Engagement checklistEngagement letterTimeframes for the auditENGAGEMENT CHECKLISTAUDITYES/NOIntroductory letter sent to clientScreening process of client completeFirst meeting with client completeGeneral issues were discussed with clientConsent to contact previous auditor requestedDetailed meeting with client discussing engagement terms held earn of engagement sent to clientChanges to scope made (if any)Letter current by client and acceptedAudit timetable copy sent to clientENGAGEMENT LETTERToDirectors of Apollo Shoes.This letter serves as representation that we will act as auditors for Apollo Shoes, therefore responsibility of the company and our firm in all respected areas of the audit.MANAGEMENT RESPONSIBILITY FOR FINANCIAL STATEMENTSResponsibility of preparation and blameless presentation of the financial statements in accordance with IFRS and SFAS will be held by management. The respected responsibility includesAppropriate accountin g policies should be selected and applied subjective controls relevant to the preparing and presenting financial statements should be designed and implemented. Financial reports should be free from misstatements.Accounting estimates should be made to a reasonable and circumstantial amount of money(Apra, 2009).AUDITORS RESPONSIBILITYOur firms responsibility is to give the company an opinion on the financial statements that are presented to us establish on our audit findings. We will review all data collected and ascertain that information and work is in compliance with statutes, regulations, GAAP, SFAS, and IFRS. We will withal ascertain that the data is in compliance with the code of ethics for sea captain auditors (Apra, 2009).Audit will include the review and examination of all figures and facts on a test innovation. Due to the nature of the test there may still be a risk that some misstatements will go undiscovered. In order to reduce risk we encourage and need Apollo to pro pose and make necessary arrangements relating to the execution of the audit. Our firm will require free access to all records, documentation and all information requested by our firm. Any representation that the company makes in connection to the audit will be expected to be confirmed and in writing.When the firm feels that there is sufficient work reviewed and completed by the auditors to establish an opinion, the firm will issue and audit report. The report will be given to the company if all issues and circumstances brought forth by the auditors is resolved by the company. lean AND OTHER ISSUESThe firms fee will be charged on a fixed amount of $12,000 plus an spare hourly wage found on the number of hours worked by the firms staff on your companies audit engagement. This additional fee will vary depending on the level of seniority the individual has and time spent. Our firm will issue a management letter, which will focus on the companies weaknesses in the internal control sy stem, which arose from the audit. This letter is a professional courtesy letter and is not a part of the audit.Please sign this letter and send it back to us. Once signed, this letter will represent the confirmation of the terms of engagement. This letter will remain powerful until the letter is superseded, canceled or amended.Sincerely,AuditorsOn behalf of directorsSignature __________________________________TIMEFRAMES FOR THE AUDITAUDIT view COMPLETEDDATE REVIEWEDGathering of knowledge about clientindustriousness statsProduct rangeMarkets operatedKey customersKey suppliersCompetitorsRisk assessmentinitial analytical proceduresKey evaluation of audit approachSelection basis of samples testing receivablesTesting and checking inventoryTesting payablesTesting long-term liabilitiesTesting capital and other shareholders fundsTesting and verifying non-current assetsVerification of hard cash and bank detailsFinal analytical reviewReview of positioning balance sheet eventsApplication of accounting standardsAudit finalization field of study of audit reportReferencesArens, A.A., Elder, R.J., & Beasley, M.S. (2012). _Auditing and Assurance Services_ (14thed.). Upper Saddle River , NJ Prentice Hall.FASB. (2014).Apra. (2009). _Auditor Report._ Retrieved from http//www.apra.gov.au/Superannuation/upload/AuditReport_Vn2-Sept.pdf