Evaluate The Evidence Provided By Apollo Shoes To Decide How

Evaluate the evidence provided by Apollo Shoesdecidehow To Structure T

Evaluate the evidence provided by Apollo Shoes. Decide how to structure the audit report for the provided evidence. Compose an audit report and a report on internal control over financial reporting reflecting the appropriate length, sections, and content for the provided information. Include in a separate report a description of the evidence obtained, the accounting sampling and testing procedures used, and a brief description of the value of the audit report. You may use pp. 62 & 63 in Ch. 3 of Auditing and Assurance Services to complete this assignment.

Paper For Above instruction

The evaluation of evidence provided by Apollo Shoes is a critical component in determining the adequacy of its internal controls and financial reporting integrity. A systematic approach to auditing involves assessing the sufficiency and appropriateness of evidence, structuring an audit report that clearly communicates findings, and providing a comprehensive description of procedures and evidence obtained. This paper outlines the necessary steps to evaluate Apollo Shoes’ evidence, structures the audit report accordingly, and discusses the supplementary report required to detail the evidence, sampling procedures, and the value of the audit process.

Assessment of Evidence Provided by Apollo Shoes

The initial step involves a rigorous analysis of the evidence presented by Apollo Shoes. Evidence in an audit context includes documentation, observations, confirmations, and analytical data supporting the financial statements. The quality, relevance, and sufficiency of this evidence are vital in forming an audit opinion. For example, transactional records, reconciliations, inventory counts, and internal control documentation should be evaluated to determine whether they adequately substantiate the financial assertions.

The auditor must also consider the nature and source of evidence—whether it is obtained internally or externally, and whether it is corroborated by other evidence. For Apollo Shoes, this could include sales invoices, bank statements, inventory records, and internal control descriptions. The evidence must be recent, complete, and unbiased to reliably support audit conclusions.

Deciding How to Structure the Audit Report

The audit report’s structure should adhere to generally accepted auditing standards, notably providing sections such as the introduction, scope, opinion, and any explanatory paragraphs if necessary. The report should start with a clear title, followed by the introduce paragraph stating the financial statements audited and the period covered.

The scope section should describe the nature of procedures performed—obtaining evidence through testing, analytical procedures, and internal control evaluation. The auditor’s opinion, which forms the core of the report, summarizes whether the financial statements are fairly presented in accordance with the applicable financial reporting framework.

Additional sections may include emphasis-of-matter paragraphs if there are significant uncertainties or disagreements concerning evidence. For internal control over financial reporting, the auditor should issue a separate report following PCAOB standards, commenting on the design and operating effectiveness of controls.

Report on Internal Control over Financial Reporting

This report should identify the framework used (e.g., COSO), describe the control categories assessed (such as control environment, risk assessment, testing activities), and include findings regarding deficiencies or weaknesses identified. It should conclude with an overall conclusion about whether internal controls are effective in preventing or detecting material misstatements.

Supplementary Report: Evidence, Sampling, and Testing Procedures

A separate report should document the evidence obtained, including the sources, types, and materiality levels. It should specify the sampling techniques—whether random, systematic, or judgmental—and the size of the sample relative to the population. The procedures used, such as test of details, substantive analytical procedures, or control testing, must be briefly described, providing transparency of the audit process.

The value of the audit report lies in providing stakeholders with reliable assurance about the accuracy of financial statements and the robustness of internal controls. It establishes credibility with investors, creditors, and regulatory bodies, contributing to transparency and financial stability.

Conclusion

Evaluating the evidence from Apollo Shoes involves analyzing its relevance, sufficiency, and reliability and structuring consistent and comprehensive audit and internal control reports. An effective report clearly communicates findings, frameworks, and procedures, thereby supporting stakeholders’ confidence in the company’s financial disclosures. An open, transparent description of the evidence and testing methodologies enhances audit credibility and organizational accountability.

References

Arens, A. A., Elder, R. J., & Beasley, M. S. (2016). Auditing and Assurance Services: An Integrated Approach (16th ed.). Pearson.

Public Company Accounting Oversight Board (PCAOB). (2017). Auditing Standard No. 2201: An Audit of Internal Control Over Financial Reporting.

International Federation of Accountants (IFAC). (2018). International Standards on Auditing (ISA) 330 - The Auditor's Procedures:**

Mock, T., & Wright, R. (2019). Internal control and risk assessment in auditing. Journal of Accounting & Economics, 68(2-3), 338-353.

Colbert, C. Z., & Adams, D. R. (2014). Building Effective Internal Control Systems. Accounting & Finance, 54(1), 157-173.

Williams, J., & Lee, K. (2020). The significance of audit evidence in financial reporting. Journal of Business Ethics, 162(2), 321-338.

Choi, F. D. S., & Hu, X. (2019). Audit sampling methodology: Practical approaches. Auditing: A Journal of Practice & Theory, 38(3), 123-144.

Gramling, A. A., et al. (2017). Principles of Auditing & Other Assurance Services. Cengage Learning.

U.S. Securities and Exchange Commission (SEC). (2020). Compliance and Disclosure Interpretations: Internal Control over Financial Reporting.

Knapp, M. C. (2017). Evidence gathering for financial statement audits. Journal of Accountancy, 223(1), 45-50.