Audit Process Letter

In: Business and Management

Submitted By bassfish
Words 1378
Pages 6
Audit Process Letter
Laura Sferra
ACC/546
November 23, 2015
Allen Foster

Mrs. Susan Right
Senior Partner
Anderson, Olds, and Watershed
1 Shoe Street
New York, NY. 90001

Dear Mrs. Right,

Mr. Lancaster, President of Apollo Shoes, has expressed his satisfaction with the services that our firm offers and would like to continue with a full audit. Because our client does not want our firm to talk to the predecessor auditor, I recommend accepting a prospective engagement after I perform an investigation by gathering information about our client's reputation and background. Client acceptance and continuance procedures are the foundation of the risk assessment process (SAS No. 8). Upon acceptance of our client, I am confident that we will be able to move forward under the AICPA auditing standards to determine that the financial reporting framework is appropriate. My objective is to plan the audit so that it is conducted efficiently and effectively, in accordance with Generally Accepted Auditing Standards. I will take into consideration the preliminary planning activities such as the client acceptance, ethical position of our audit firm and our understanding of the entity and its environment, including its internal control, to develop an effective and efficient overall audit strategy that will appropriately respond to assessed risks. Our engagement letter, will include the timetable of fieldwork, the scope and duration of the audit, expected delivery date, and our fee structure. Once we retain our client, substantive audit planning can begin. Determining materiality and conducting a thorough risk assessment will be part of my plan. The audit strategy will help determine the resources required for the engagement, including engagement staffing and the need for outside specialists. The audit program will…...

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