Question

In: Accounting

You are on the audit team of Apollo Shoes, Inc. for the year ending December 31,...

You are on the audit team of Apollo Shoes, Inc. for the year ending December 31, 2015 and your manager has asked you to prepare a draft of the engagement letter
Some things to note:

All pre-engagement activities have been completed

They are a public entity

Mr. Larry Lancaster is the president and chairman of Apollo Shoes Board of directors

Instructions: Prepare the draft engagement letter

Solutions

Expert Solution

Name of the firm

Apollo Shoes Inc.

Adress

Dear Mr. Larry Lancaste:

This is in connection with our engagement relating to audit of the financial statements of Apollo Shoes Inc.,(‘Company’) for the year ending 31 December 2015 .

We will audit the Company's balance sheet, statement of profit an loss and cash flow statement as of 31 December 2015 and provide our opinion on them. The preparation of financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the same.

Scope of work

We will conduct our audit in accordance with generally accepted auditing standards. The standards require that audit should be performed to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining evidence supporting the amounts and disclosures in the financial statements on a test check basis. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit will provide a reasonable basis for our opinion.

Our Fees

Our fees will be USD <<>>> and will be billed as work progresses.

Kindly sign the enclosed copy where indicated and return it to us.

We appreciate the opportunity to serve you and trust that our association will be a long and pleasant one.

Sincerely,

FIRM NAME

______________________________

[Engagement Partner's Signature]

Accepted and agreed to:

______________________________

[Apollo Shoes Inc.]

______________________________

[Title]

______________________________

[Date]

ekkarill92 answered 5 months ago
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