After reviewing last year’s (2013) 10-K filing with the SEC, the board of directors’ minutes, and other documents pertaining to Apollo Shoes, Inc. here is our initial recommendation for staffing requirements: audit engagement partner *
It audit specialist
Tax partner
Quality assurance partner
Legal specialist
Audit Staff *
Audit Engagement Partner – the audit engagement partner is someone who has industry knowledge and will have the final responsibility for the audit engagement. Arnold Anderson, CPA, has been assigned to be the lead partner for the Apollo Shoes, Inc. audit for the period ending December 31, 2014, and fulfills the necessary requirements. Audit Manager – the audit manager will be in charge of overseeing the audit engagement, including planning the work, supervising any assistants, and communicating with the client. The audit manager assigned to Apollo Shoes, Inc. audit is Darlene Wardlaw. Information Technology Specialist – an IT specialist will help oversee and monitor Apollo Shoes information technology system to ensure proper policies, procedures, and controls are in place to mitigate control risk. They will also be able to compile a vast array of complex data into a coherent report for the audit committee.
The Term Paper on Beginning The Audit Report 4
As you know, our firm has been selected to perform the Apollo Shoes audit. The planning process has been the most delicate stage as we want to ensure we have a solid audit approach. The team I select will be dedicated in meeting the objectives and strategies for completing the audit. I will briefly explain to you how I plan to begin the audit process. Now that Apollo Shoes has selected our firm, ...
Further, an IT specialist will be needed to determine the total cost of installing Apollo Shoes new information system, and shed some light on why a $44 million draw was made to fund the purchase when the board had originally approved up to $1.2 million for the purchase and installation of a new information system. Quality assurance partner – is the second partner on the engagement, who will be responsible to review the work in areas with significant risk, including evaluating significant judgments made by the audit team and the conclusions reached. Since Apollo Shoes, Inc. will be a first year audit, having a quality assurance partner to review the audit team’s work and conclusions will be critical.
tax partner – a tax partner will be needed to review and perform any tax services approved by Apollo Shoes, Inc. audit committee. Legal Specialist – a legal specialist may be required to help determine the outcome of the pending lawsuit brought against Apollo Shoes, Inc. for gross negligence in the amount of $12 million. Another important matter that needs to be addressed by a legal expert is the advance of $1.25 million the board approved to Mr. Lancaster to cover personal legal expense for his secretary. Further, the recording of the advance as an “other receivable” rather than an “employee advance” also needs to be further investigated.
* Please note that these positions have already been assigned, and therefore, no additional personnel will be needed in these areas.
