Running head: APOLLO SHOES CASE - INVENTORY AUDIT
Apollo Shoes Case - Inventory Audit
Team member names
ACC492 - Contemporary Auditing II
Feedback from Instructor
The audit of inventory is usually
Auditing standards apply to work on all audited financial statements and on unaudited financial
statements of public and nonpublic companies.
In a review services engagement, an accountant performs some limited procedures
Apollo Shoes, Inc.
Search for Unrecorded Liabilities
For Year Ended 12-31-2011
From Cutoff Bank Statement:
From Check Register
Date of Check Payee
Apollo Shoes, Inc.
Inventory Lead Schedule
For Year Ended 12/31/2011
12300 Reserve for Inventory Obsolesc
1. Is the credit department independent of the
2. Are sales of the following types controlled by
the same procedures descr
Intermediate Accounting 12th Edition (by D. E. Kieso, J. J. Weygandt, T. D. Warfield 2007
STATEMENT OF CASH FLOWS
Apollo Shoes Inc.
Fraud Risk Memo
October 30, 2012
This memo is addressing the possibilities of fraud for the Apollo Shoes company. Fraud
is knowingly making material misrepresentations of face, with the intent of inducing
someone to believe the falsehood
Date: October 31, 2009
Subject: SAS 99
SAS 99 is a generally accepted auditing standard, Consideration of Fraud in a Financial
Statement Audit, that discusses types of fraud possible in financial statements and
November 1, 2008
Dear Mr. Lancaster
This is a letter will confirm our understanding of the arrangement for our audit of the financial of
Apollo Shoes Inc., for the year ending December 31, 2008.
We will audit the eh companys balance sheet at December
The first paragraph of the standard report on the entity's financial statements is referred to as the scope
The introductory paragraph of the auditors' report indicates that an audit has been conducted and
Interim testing is ordinarily done prior to the date of the financial statements.
Auditors are not responsible for evaluating the accuracy of management's estimates but the
reasonableness of those estimates.
Financial planning starts with the chief financial officer's cash flow forecast.
Sales of capital stock and debt financing transactions usually are authorized by the board of directors.
In large companies, cu
Most businesses try to estimate sales levels and seasonal timing and then try to plan production schedules
to meet customer demand.
Production planning interacts with inventory planning to produce production orders.
Revenues are normally considered to have been earned when
a. All posibility of return has expired
b. The company has substantially accomplished what it must to be entitled to the benefits
c. The cash is collected
d. Goods have been shipped
Apollo Shoes, Inc
Accounts Payable Schedule
For Year Ended 12/31/2013
List of Approved Vendors
Anglonesian Institute for Reprograming and Rehabilitation
B. Franklin's LP & P
Fleur de Lis Catering
Lawyers "R" Us, LLC
Office Hacks Supplies
As corporate controller for Apollo Shoes, you are tasked to find and explain any
irregularities in the Apollo Shoes Case.
Resource: Apollo Shoes Casebook
Define the process you will use and address the following assessed classroom