The Audit Report and Internal Control Evaluation Essay Example for Free

The Audit Report and familiar Control Evaluation EssayAn audit has been pass with flying colorsd for Apollo situation as of December 31, 2005 and 2006, and the associated income statement, sh atomic number 18holders equity, cash flows and complete income. My firm has reviewed the organizations assessment, comprised in the associated spread over of management on Commercial Reporting, in which Apollo Shoes bear on definite inbred get a line as of December 31, 2006, founded on standards recognized in internal nurse. The management team of Apollo Shoes is accountable for the monetary reports, for sustaining current internal simplenesss, and appraisal of internal control regarding financial reporting. It is our duty to communicate an unbiased view on these financial reports, assessment by management, and the improvement of the organizations internal control sustaining the financial report. My team has organized our inspections in conjunction with the principles of the ex istence Company Accounting Oversight Board (PCAOB).We strategically planed and enforced the audit to acquire practical assurance. Regardless, the tangible internal control consisting of fiscal reporting was sustained in all respects of materiality or whether financial reports are without material misstatement those standards that the PCAOB welcome put into place are required in regularize to plan and prepare for a proper audit. Our review of the financial reports entrust consist of proof promoting the totality of assets and disclosures in the financial reports, investigating all details in their entirety, evaluating the superior generally accepted accounting principles (GAAP), and estimating the general arrangement of financial reports. During the audit we obtained a comprehension of internal control over Apollo Shoes monetary reporting, and we appraised managements valuation. We preformed all services and procedures as we felt necessary. We tested and assessed the proposal a nd the internal controls operating usefulness.These audits supply practical reasoning for the opinions concluded. We did not find it necessary to audit the financial reports for the year ended December 31, 2006 due to the financial reports being previously audited by other auditors whose report relates to the previous period. A procedure developed to supply justifiable guarantee regards to the fluency and consistency of financial recording and the planning of financial reports for external purposes in accordance with (GAAP) is an organizations internal control over fiscal recording. An organizations financial reporting that consists of internal control, contains those guidelines and processes that relate to the conservation of reports that truthfully and justifiably replicate the communications and natures of the companys assets and provide reasonable assertions that those transactions are record as required to authorize the research of monetary reports in agreement with GAAP.All r evenues and expenses of the organization are only being created in agreement with approvals of directors and management of the organization. These policies and procedures also implement practical assertion pertaining to the stifling or appropriate recognition of procurements unauthorized or nature of the organizations deliverions that may possess a quantifiable conclusion on the financial reports. Misstatements may not be avoided or find because of its subjective restrictions. Furthermore, additions of any assessment of usefulness to impending periods are governed due to the threat that controls possibly will develop insufficiencies due to alterations in circumstances, or that the degree of acquiescence with the guidelines or processes may depreciate.Apollo Shoes has alienated its chief customer and is in legal dispute with one of its clients that has resulted in a lawsuit for an number of $12,000,000 against the organization. The case is in the preliminary juncture but the org anization will provoke a tip of $10,000,000 minimum litigation in conjunction to the result of case. Due to these circumstances consequently the financial statements have not been adjusted. It is the firms opinion that the financial statements denoted in the previous paragraph present justly, in all quantifiable regards, the pecuniary situation of Apollo Shoes, INC. as of December 31, 2005 and 2006 and the outcomes of Apollos cash flows and procedures for the three years in the period ended December 31, 2006 in conjunction with GAAP.In addition, it is our opinion that Apollo Shoes sustained operative internal control and is legitimately stated in all material aspects established on the Committee of Sponsoring Organizations (COSO) criteria. The additional financial reports have been adjusted presuming the Apollo Shoes attains the incomes required to endure and function indefinitely. However, as discoursed in the financial statements notes, Apollo Shoes no longer does business with its major customer. This raises considerable uncertainty in the organizations capability to endure as a going concern. The financial reports do not contain any modification that might effect the conclusion of this conjecture. Anderson, Olds and Watershed Certified Public Accountants CPA, inhering Audit November 26, 2012 Anderson, Olds and Watershed Certified Public Accountants Shoetown, ME 0001