Beginning The Audit Report Essay Example for Free

initiation The Audit Report EssayI would like to thank you for vesting your party and trust in our fast to be your hearers. In this garner an explanation of the general terms and the touch on of our audit pass on be defined. This is only an educational purpose earn and is non an agreement.THE AUDIT PROCESSAn audit is an examination and surveil of companies monetary statements. The examination is performed with a view to portray an opinion of whether the companies financial statements prove a professedly and fair statues of the compevery. Auditing the activities of the family testament be planned, executed properly and thoroughly reviewed to assure that wholly statements be in compliance with laws and regulations. The following is the process as to which our firm will be conducting the auditWe permit a strict guestele screening process, once the screening process ofthe company is reasond and confirms that youre company is an acceptable node we will proceed wit h the next step in the process.Once the screening process is passed we might need to contact the companies previous auditor and have agreed consent from them to proceed. If the previous auditor does not consent or if your company does not wholeow us authority to contact he previous audit our firm will not perform the audit in your company.After all consents have been given in that respect will be an audit engagement 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 representation the audit will be performed and what expectations of the firm and company will be.Once your company receives the engagement letter, all data will be collected from your company and the environment. The information collected will allow us to identify problem areas from prior audits.When all data is gathered we will lie with a happen assessment of the company so that the best audit approach may be selected.For low risk of exposure companies we may test controls to analyze whether or not the companies internal controls are functioning followed by a smaller set of substantive testing.If the company is high risk your internal controls are weak, we would will hope heavily on substantive testing in disposition 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 work is completed we will review the audited work and bring onward any issues to you that have risen from the audit work.When the issues are resolved (if any), the audit report will be issued. This would conclude our audit process on the companies accounts and statements for the year.Attached you will find other documents which will give you a better understanding of the audit process. Please if you have any questions please feel free to pen to us.Thank you,The audito rs._Attachments_Engagement checklistEngagement letterTimeframes for the auditENGAGEMENT CHECKLISTAUDITYES/NOIntroductory letter sent to clientScreening process of client completeFirst meeting with client completeGeneral issues were discussed with clientConsent to contact previous auditor requestedDetailed meeting with client discussing engagement terms heldLetter of engagement sent to clientChanges to scope made (if any)Letter genuine by client and acceptedAudit timetable copy sent to clientENGAGEMENT LETTERToDirectors of Apollo Shoes.This letter serves as representation that we will act as auditors for Apollo Shoes, therefore responsibility of the company and our firm in all respected areas of the audit.MANAGEMENT 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 complicatesAppropriate write up policies should be selec ted and appliedInternal controls relevant to the preparing and presenting financial statements should be designed and implemented. Financial reports should be free from misstatements.account estimates should be made to a reasonable and circumstantial amount(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 in any case 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 and make necessary arrangements relating to the execution of the audit. Our firm will require unrestricted access to all records, documentation and all information requested by our firm. both representation that the company makes in connection to the audit will be expected to be affirm 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 circumstances 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 moment of hours worked by the firms staff on your companies audit engagement. This additional fee will vary depending on the take of seniority the individual has and time spent. Our firm will issue a management letter, which will revolve around on the companies weaknesses in the internal control system, which arose from the aud it. This letter is a professional courtesy 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 confirmation 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 AUDITAUDITDATE COMPLETEDDATE REVIEWEDGathering of knowledge about clientIndustry statsProduct rangeMarkets operated make customersKey suppliersCompetitorsRisk assessmentInitial analytical proceduresKey evaluation of audit approachSelection basis of samplesexamination receivablesTesting and checking inventoryTesting payablesTesting long-term liabilitiesTesting capital and other shareholders fundsTesting and verifying non-current assetsVerification of cash and assert detailsFinal analytical reviewReview of post balance sheet eventsApplication 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 assimilator Hall.FASB. (2014).Apra. (2009). _Auditor Report._ Retrieved from http//www.apra.gov.au/Superannuation/upload/AuditReport_Vn2-Sept.pdf