Task: Apollo Shoes SAS 99 Memo
General Planning
Question: Obtain an understanding of the company, its internal control, and its audit risk factors (including the risk of material misstatements due to fraud).
1) Hold a discussion among engagement team members about the risks of material misstatements due to fraud. Document the discussion.
2) Complete the "Audit Planning Form."
3) Make inquiries of management and other employees about the risks of fraud. Document the inquiry procedures.
4) Consider the existence of fraud risks factors.
5) Identify and assess risks of material misstatements due to fraud and develop your responses.
6) Complete the revenue internal control questionnaire and document understanding of the revenue and collection cycle.
7) Complete a test of controls for the Revenue Cycle
For step (4) in the program above, prepare the documentation for the meeting to discussion fraud risk factors in accordance with SAS 99 for Apollo Shoes Audit. Ignore the other steps for this posting.