Friday, May 17, 2019
Engagement Letter Essay
The memo verifies the agreement of the purpose of the difference of opinion and the quality and constraints of the service the solid offers. Talbot Auditing Firm will review the financial statements of Apollo Shoes at the intercept of the year. Talbot analyzeing firm will review the accounts such as the operations records, retained earnings, and cash flow accounts. An audits goal is to form an opinion more or less the fairness of the accounting records in accordance with generally Accepted Accounting Principles. The audit will be performed according to auditing standards generally accepted in the coupled States. The firm will perform tests of the accounting records and other procedures essential in stating an opinion. If the opinion is non unqualified, the firm will give reasons. If the firm cannot complete the audit, they might not give out a taradiddle on the engagement.The firm will test the existence of inventory, and confirm receivables and payables and other assets and liabilities by letters to a few customers, creditors, and financial institutions. The auditor will ask for a letter of representation from the companys attorney. The attorney might bill Apollo Shoes for replying to the query. When the firm concludes the audit, the firm may ask for written statements about the financial statements and other issues. The auditor will carry out the audit to know if the records are set free of solid misstatement. The auditors intention is to give reasonable, not absolute assurance.The auditor will not provide a thorough assessment of each transaction so a risk of material errors, fraud, and illegal acts might exist and go unnoticed by the auditor. The firm may terminate the services for nonpayment and consider the engagement completed upon a written request of termination even though the auditor fails to complete a report. Apollo Shoes will pay for extended time and out-of-pocket constitute through date of termination. If you agree to the above condi tions of this engagement, sign the letter at the bottom. Please return the write letter and keep a copy for company records. Thank you for your prompt attention to this matter. Do not hesitate to contact me if you have questions.