Mr. Lancaster, The firm of Anderson, Olds, and Watershed is pleased to receive your notification to proceed with the audit and look forward to working with you. From the Audit Committee meeting minutes, we understand that Apollo Shoes requires help with the yearly audit because the former CPA firm withdrew unexpectedly (University of Phoenix, n.d.). Anderson, Olds, and Watershed will conduct the audit and “prepare the state franchise tax returns as well as the federal tax returns” (University of Phoenix, n.d., p. 9). Because of Apollo’s previous work with Smith and Smith, Anderson, Olds, and Watershed is “required by auditing standards to communicate with” Smith and Smith (Arens, Elder, & Beasley, 2012, p. 212). Ms. Wardlaw …show more content…

al, 2012, p. 214).
As requested, the firm will also prepare the state franchise tax return, the federal tax return, and review the 10-K filing material.
Invoices for services are due upon receipt. Anderson, Olds, and Watershed will bill as work in process based on the time required for the audit, plus out-of-pocket expenses. Ms. Wardlaw will notify you if the firm encounters any conditions that would significantly affect our estimate of $750,000.
If this letter correctly expresses your understanding, please sign the enclosed copy and return it to us. We appreciate the opportunity to serve you.
Accepted: Sincerely:

Mr. Lancaster Mr. Anderson
Chairman, President and CEO Partner, Anderson
Date:

ANDERSON, OLDS, AND WATERSHED, CPAs
Audit Engagement Checklist

ANDERSON, OLDS, AND WATERSHED, CPAs
Audit Timeline and Objectives Audit
Phase | Audit Deliverable | Completion
Timeframe* | Planning | Schedule the Audit | Complete | | Audit Confirmation Letter – Distribute | Complete | | Senior Management Meeting Planner Request - Prepare | Complete | |