Auditing Introduction Letter
Essay Preview: Auditing Introduction Letter
Report this essay
December 24, 2012
Timothy Louwers
Apollo Shoes
5678 North Drive
Phoenix, Arizona, 12345
Dear Mr. Louwers
Re: Audit and assurance services
It has come to my attention that Apollo Shoes has interest in obtaining audit and assurance services from Phoenix International. Allow me to begin by thanking you for choosing one of the best accounting firms in the state of Arizona. This letter displays several main auditing and assurance services that Phoenix has to offer to fit Apollos concerns and benefits from obtaining such services. In addition, I will express my role involved in each provided service as well as the requirements for meeting the standard by the services this company offers.
Assurance Services
Assurance services are “independent professional services that improve the quality of information for decision makers” (Arens, Elder, & Beasley, 2011, p. 8). Either certified public accountants (CPAs) or specialized professionals perform audit and assurance services here at Phoenix International. Assurance services focus on historical financial statement information. The most commonly used assurance service is that of attestation services. Attestation services consist of the “(1) audit of historical financial statements, (2) effectiveness of internal control over financial reporting, (3) review of historical financial statements, and (4) other attestation services that may be applied to a broad range of subject matter” (Arens et al., 2011, p. 9). In addition to attestation, Phoenix also performs a variety of auditing services.
Auditing Services
The auditing on financial statements is extremely important to a business as well as its stakeholders (lenders, shareholders, investors, etc.). At Phoenix International, we guarantee to approach with an understanding of the business and the risks Apollo Shoes faces. Based on the gathering of data, we ensure a focused effort on where it matters the most: helping the client better to understand his business. Phoenix conducts three main audit types, financial statement audits, operational audits, and compliance audits that are effective and cost efficient. The most commonly performed audit is the financial statement audit. This audit focuses on the underlying activities and operations of accounting entries. In this type of audit, Phoenix will review Apollos financial statements, policies, and procedures, and determine its conformity to generally accepted accounting principles (GAAP). An audit team will be carefully selected to include industry experts and specialists in the areas of taxation, business advisory, and evaluation, if deemed necessary. Apollo Shoes will have direct access to any professionals used. We look to provide assurance that managements assertions and the financial statements are complete and accurate and that it is free of material misstatement(s). We will provide this service at least once a year.
Operational audits, which are internal audits, focus on the companys