Audit Intro Letter Essay

  
Sharmain Carthan, CPA
Anderson, Olds & Watershed LLC
1299 University Drive
Atlanta, GA 33333
Larry Lancaster, President and Chairman
Apollo Shoes, Inc.
1452 Apollo Drive
Atlanta GA 33445
Dear Mr. Lancaster:
It is with great pleasure here at Anderson Olds and Watershed that we provide you with valuable information pertaining to our auditing services. This memo will provide information in regards to our auditing and assurance services and explain my role in providing these services. I will also describe any requirements for meeting the professional standards and the ethical implications to these standards.
At Anderson, Olds and Watershed (AOW) we understand the need for our professional services and expertise to meet your organizational needs. We offers a wide variety of services that can be useful to your organization. AOW offers operational, compliance and financial audits for our clients. Operational audits evaluate the efficiency and effectiveness of the organization’s processes and procedures. It studies parts of an organization with the intent of measuring its purpose. A compliance audit is performed to ensure an organization’s adherence to guidelines, rules and procedures set by management. The financial audits consists of auditing the financial statements. Compliance and operational audits can affect the profitability of the organization. Once the audits are completed, we can provide recommendations for improving operations.
Our firm offers a wide variety of auditing and assurance services that will enable us to provide you with the service and flexibility that would be needed to suit your organization’s needs. We offer the following attestations services: audits of historical financial statements, audit of internal control over financial statements, review of historical financial statements attestation services over information technology and other attestations services that may be applied to a wide variety of subject matters. These services are a type of assurance that we issue a report about the subject matter or assertion that is made by someone else. Each of these attestation services has a benefit that will help enhance operations for your organization.
Management asserts that the financial statements are stated fairly and in accordance with applicable accounting standards. In an audit of historical financial statements the auditor issues a written report expressing an opinion about the reliability and accuracy of the financial statement. These audits are the most common assurance service provided by any CPA firm. Many companies use their financial statement to obtain financing from banks or other financial institutions.
Section 404 of the Sarbanes-Oxley Act requires publicly traded to report management’s asserts that internal control has been established and implemented. Also under this section, auditors of publicly traded companies are required to attest to the effectiveness of internal control over financial reporting. The audit of internal control over financial reporting combined with the audit of historical financial statement helps increase user confidence about future financial reporting because having effective internal controls reduce the risks of future misstatements in the financial statements.
The review of historical financial statements is a lower level of assurance service for reviews of financial statements and less evidence is needed. It is less costly and provides limited assurance on financial statements. A review is often adequate to meet financial statement user’s needs.
There are many business functions that are conduct over the internet or using electronic data interchange (EDI). Some of these functions are ordering and making payments. Management has the responsibility of ensuring that electronic information is reliable and secure. Attestation of services on information technology provides assurance about information, transactions and the security that

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