April 22, 2015
ANDERSON, OLDS, AND WATERSHED, CPAs
Audit Engagement Letter
April 20, 2015
Mr. Larry Lancaster, Chairman, President and CEO
4604 Oakley St.
Macon, Georgia 31212
Dear Mr. Lancaster,
Our firm, Anderson, Olds and Watershed will be providing an audit for Apollo Shoes. We would like to confirm our understanding of the financial statements audit that will be performed for Apollo Shoes for the year ending December 31, 2014. In order to express an opinion “on the fairness with which they present, in all material respects, the financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America.” (Arens, et. al, 2012, p. 214), our firm will audit all of Apollo Shoes 2014 financial statements. Our firm complies with all GAAP standards that require a firm to obtain reasonable, but not absolute, assurance that “ the financial statements are free of material misstatement, whether caused by error or fraud.” (Arens, et.al, 2012, p.214). During an audit, there is always the possibility that material misstatement may not be detected. Errors that are under materiality level that could be resulting from fraud, misappropriation of assets or error may not be detected during the audit as well. Our firm can decline to express an opinion or issue a report if the audit cannot be completed for any reason. In order to conduct an audit, Anderson, Olds, and Watershed must have an understanding of the internal control processes to help determine the timing and nature of the audit for Apollo Shoes. Our firm will bring attention to any deficiencies that arise to the audit committee. Audits are not designed to give a company assurance or to detect any deficiencies. Anderson, Olds, and Watershed will rely on Apollo Shoes for financial statements, schedules and analyses of various accounts...