Financial Accounting > CASE STUDY > ACC 546 Week 4 Apollo Shoes Draft 2 (All)

ACC 546 Week 4 Apollo Shoes Draft 2

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ACC 546 Week 4 Apollo Shoes Draft 2 Anderson, Olds, & Watershed CPA’s were retained by Apollo Shoes, Inc. to conduct an audit that would help ascertain the reliability of the financial data provid... ed to the public. Balance sheets, income statements, along with shareholders equity and cash flows were assessed in a manner that allows our firm to provide an opinion based on the likelihood of material misstatements within the organization. Section 404 of Sarbanes-Oxley of 2002 mandates that our firm conduct an overview of managements assessment if its internal controls in order to attest and report on the effectiveness of these controls in mitigating the possibility if risks of material misstatements within the financial statements. We must emphasize that responsibility of developing and implementing effective internal controls is the responsibility of management and out firm is simply to express an opinion not only on the accuracy of the financial information but also on the effectiveness of such controls. Regulations and Guidelines Related to Audits of Internal Control Description of Internal Control Risks Identified Within Apollo Shoes The overall evaluation of the internal control processes over the revenue and collection cycle it was determined that numerous deficiencies exist that are likely to cause material misstatements in the financial reports. Relationship Between Internal Controls and the Audit Process Internal controls are a key factor in the audit process. Internal controls help improve the efficiency and effectiveness of a company and also help decrease fraud and theft. Brief Synopsis Responsibility In Detecting and Reporting Fraud “Throughout an audit, the auditor continually evaluates whether evidence gathered and other observations made indicate material misstatement due to fraud. References Arens, A. A., Elder, R. J., & Beasley, M. S. (2014). Auditing and Assurance Services (15th ed.). Retrieved from The University of Phoenix eBook Collection database. [Show More]

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