Beginning the audit reportName:Course: ACC 546Instructor:Date: Engagement letterAugust 7, 2014Mr. Larry LancasterChairman, PresidentApollo Shoes, IncShoetown, MESubject: beginning the audit reportDear Mr. Lancaster,Audit objective and scope of audit in financial statements This letter focuses on our previous understanding about the audit procedure for Apollo Shoes, Inc. The firm is pleased to inform you that we are available to carry out the audit of financial statements for the year ended 31 December 2013. Anderson, Olds, and Watershed, CPAswould also like to point out and confirm the nature and objectives of this engagement. Our services will cover financial statements including the balance sheet, income statement, statement of cash flows and statement of retained earnings. It is also important to highlight that the firm will confirm whether the financial statements are presented and fairly prepared according to Generally Accepted Accounting Principles-GAAP (Rittenberg et al., 2012). Furthermore, the team members will focus on the internal controls put in place as effectiveness of operation activities in view of the need to perform assurance services. Management responsibilitiesThe management is responsible for the preparation of financial statements, and the auditors will merely examine statements and express opinion. Even though, the partners know that the management ought to represent the financial statement and disclosure, where possible the auditor will help in preparation of financial statements. Essentially, this will also delve into providing counsel to the management on application of different accounting principles and adjustment to Apollo Shoe Inc’s financial statement. Nonetheless, the management will make the decision on the content of the financial statement. Additionally, the management is responsible for ensuring that that there is effe...