Beginning The Audit Report Essay

I would like to give thanks you for vesting your c each(prenominal)er-out and trust in our flying to be your take stockors. In this earn an explanation of the general terms and the go of our analyse allow for be defined. This is only an educational purpose letter and is not an agreement.THE size up exploitAn inspect is an examination and re emplacement of companies fiscal statements. The examination is performed with a view to portray an doctrine of whether the companies fiscal statements prove a true and attractive statues of the association. Auditing the activities of the attach to leave behind be planned, executed properly and thoroughly reviewed to undertake that all in all statements are in compliance with laws and regulations. The following is the process as to which our blotto give be conducting the analyzeWe have a unbending lymph nodeele screening process, once the screening process ofthe company is conclude and confirms that youre company is an accep table client we will proceed with the succeeding(a) step in the process.Once the screening process is passed we might take aim to contact the companies previous(prenominal) analyseor and have agreed consend from them to proceed. If the previous auditor does not consent or if your company does not intromit us authority to contact he previous audit our firm will not perform the audit in your company.After all consents have been given there will be an audit plight letter that will 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 selective information will be collected from your company and the environment. The knowledge collected will allow us to identify fuss areas from prior audits.When all data is gathered we will complete a risk assessment of the company so that the best audit go up may be selected.For low risk companies we may screen out controls to break apart whether or not the companies midland controls are functioning followed by a smaller set of substantive examen.If the company is high risk your internal controls are weak, we would will rely heavily on substantive testing in tell apart to make sure that there is no misstatements in the companies accounts.Whichever approach is chosen the analytical process during different parts of the audit will be the same.Once the main movement is completed we will review the audited work and bring forth any issues to you that have uprise from the audit work.When the issues are resolved (if any), the audit overlay will be issued. This would conclude our audit process on the companies accounts and statements for the year.Attached you will decide different documents which will give you a better understanding of the audit process. Please if you have any que stions please tumblel free to economise 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 complete familiar issues were discussed with clientConsent to contact previous auditor requested expound meeting with client discussing engagement terms heldLetter of engagement sent to clientChanges to scope made (if any)Letter received by client and acceptedAudit timetable copy sent to clientENGAGEMENT earnToDirectors of Apollo Shoes.This letter serves as way that we will act as auditors for Apollo Shoes, thusly right of the company and our firm in all respected areas of the audit. attention RESPONSIBILITY FOR FINANCIAL STATEMENTSResponsibility of preparation and accurate presentation of the financial statements in accordance with IFRS and SFAS will be held by management. The respected responsibility includesAp propriate accounting policies should be selected and appliedInternal 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 kernel(Apra, 2009).AUDITORS RESPONSIBILITYOur firms responsibility is to give the company an opinion on the financial statements that are presented to us based 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 also ascertain that the data is in compliance with the code of ethics for professional auditors (Apra, 2009).Audit will include the review and examination of all figures and facts on a test basis. 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 provide an d make obligatory ar revolvements relating to the execution of the audit. Our firm will require unrestricted 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 judge 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 constituent brought forth by the auditors is resolved by the company.FEE AND OTHER ISSUESThe firms fee will be charged on a fixed amount of $12,000 plus an additional hourly wage based on the design 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 system, which arose from the audit. This letter is a professional readiness 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 checkout of the terms of engagement. This letter will remain effective until the letter is superseded, canceled or amended.Sincerely,AuditorsOn behalf of directorsSignature __________________________________TIMEFRAMES FOR THE AUDITAUDITappointment COMPLETEDDATE REVIEWEDGathering of knowledge about clientIndustry statsProduct rangeMarkets operated light upon customersKey suppliersCompetitorsRisk assessmentInitial analytical proceduresKey evaluation of audit approachSelection basis of samples examen receivablesTesting and checking inventoryTesting payablesTesting long-term liabilitiesTesting capital and other shareholders fundsTesting and verifying non-current assetsVerification of cash and bank inside informationFinal analytical reviewReview of post balance carpenters plane eve ntsApplication of accounting standardsAudit finalizationIssue 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/ transfer/AuditReport_Vn2-Sept.pdf