October 17, 2014
Anderson, Olds, and Watershed, CPA
Dear Mr. Lancaster,
This letter will confirm our understanding of the arrangement for our audit of the financial statements of Apollo Shoes, Inc. for the year ending December 31, 2014.
We will audit the Company’s balance sheet at December 31, 2014, and the related statements of income, comprehensive income, stockholders’ equity, and cash flows for the year then ended, for the purpose of expressing an opinion on them. We will also audit whether Apollo Shoes maintained effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control-Integrated ...view middle of the document...
We will conduct our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audit of the financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting includes obtaining an understanding of internal control over financial reporting, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the significant transactions and dispositions of the assets of the company;(2) provide reasonable assurance that significant transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and...