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    Ars 1 & 2

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    Adelia Putri
    The auditor sent out positive and negative confirmations to verify customer account balances for Apollo Shoes. They received responses from six customers confirming their balances. However, one customer noted they owed $1,388.75 more than stated. Another customer entered bankruptcy and did not order their last shipment. A third customer experienced payment difficulties but claims to have paid on October 1st.

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    Ars 1 & 2

    Uploaded by

    Adelia Putri
    110 views10 pages
    The auditor sent out positive and negative confirmations to verify customer account balances for Apollo Shoes. They received responses from six customers confirming their balances. However, one customer noted they owed $1,388.75 more than stated. Another customer entered bankruptcy and did not order their last shipment. A third customer experienced payment difficulties but claims to have paid on October 1st.

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    The auditor sent out positive and negative confirmations to verify customer account balances for Apollo Shoes. They received responses from six customers confirming their balances. However, one customer noted they owed $1,388.75 more than stated. Another customer entered bankruptcy and did not order their last shipment. A third customer experienced payment difficulties but claims to have paid on October 1st.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    110 views10 pages

    Ars 1 & 2

    Uploaded by

    Adelia Putri
    The auditor sent out positive and negative confirmations to verify customer account balances for Apollo Shoes. They received responses from six customers confirming their balances. However, one customer noted they owed $1,388.75 more than stated. Another customer entered bankruptcy and did not order their last shipment. A third customer experienced payment difficulties but claims to have paid on October 1st.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The audit involved sending out positive and negative confirmations to customers to verify account balances. Several customers noted issues such as incorrect balances or inability to pay.

    Neutralizer records showed they owed $1,388.75 more than what was on the positive confirmation.

    Mall-Warts claimed they did not order the latest shipment from Apollo and are currently unable to return the items.

    Document Tittle : C-2-1

    Date : January 28, 2015


    To : Darlane Wardlaw
    From : Group 12
    Subject: Apollo Shoes Audit of Account Receivable Memo
    With regard to audits of trade accounts receivable, we decided to use positive and negative
    confirmations to verify customer balances because we decided that we could not rely on Apollo's
    control over this account. A positive confirmation simply asks the customer to respond to us by
    stating whether their listed account balance is correct or not. We use this type of confirmation for all
    customers with account balances in excess of $ 1,000,000. A negative confirmation asks the
    customer to respond only if there is a problem with the registered account balance. We use this type
    of confirmation for all customers with an account balance of $ 1,000,000 or less. We also ask
    customers to confirm their total sales for the year as there are relatively few transactions for each
    customer to see. This process resulted in 6 positive confirmations and 25 negative confirmations
    being sent.
    Of the confirmations that were sent, we received back six positive confirmations, along with one
    negative one. The findings of each are listed below:
     Neutralizer - Customer records show that $ 1,388.75 more was due to be paid to Apollo than
    indicated on the positive confirmation. Neutralizer made a check with Apollo on 28/12/14
    for $ 3,053,144.23 for the 10 pallets of shoes it received.
     Mall-Warts - The customer stated that they had entered into an accidental bankruptcy on
    11/03/14, which was notified by Apollo at the time. Against Mall-Warts' wishes, Apollo sent
    a large shipment of shoes to Mall-Wart in late December (including over 1,600 pairs of size
    23 shoes). Even though Mall-Warts believes that the balance stated on the positive
    confirmation is correct, they did not order for the latest shipment and are currently unable to
    ship items back to Apollo.
     Run for Your Life Shoes - Customers certify that they have made one purchase from Apollo
    during 2014, but that they paid the entire balance as of 01/08/15.
     Tread - Customer certifies that they have returned five pairs of damaged shoes and has been
    notified that their account has been credited for the return, which should amount to $
    1,388.75, current registered balance. If not, the total purchases for the year are agreed with
    the customer record.
     Paul Bunion Footwear - Customers do not see any problem with the positive confirmation
    they have received.
     Sassy Shoes - Customers stated that they did have the balance stated on the positive
    confirmation received, but they experienced some financial difficulties during the year
    which caused payments to be slow. They also claim payment was sent on 01/10/15.
     International Soccer Federation - The customer confirms that the balance stated on their
    positive confirmation is correct, but due to a problem with the product, does not intend to
    purchase any more merchandise from Apollo.
    Document Title: C-2-2
    Neutralizer
    1359 Central Boulevand
    Derma, MS 39530
    Attn: Account Payable Dept.

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
    ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
    THE ENCLOSED REPLY ENVELOPE.

    This is not a request for payment. Please do not send your remittance to our auditors.

    Yout prompt attention to this request will be appreciated.

    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $3,051,755.48
    Purchases from Apollo Shoes during the year 2014 totaled
    $3,051,755.48
    This balance is correct except as noted below:
    Our records indicate that we owe $1388.75 more than indicated above. Wewrore a check to
    Apollo on 12/28 for $3,053,144.23 for 10 pallets of shoes.

    Date : 1/20/2015 By : Rudy Robinson


    Title : Accounts Payable
    Document Title: C-2-3
    Mall- Warts
    146 Boardwalk Drive
    Atlantic City, NJ 08401
    Attn : Accounts Payable Dept.

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
    ACCURACY OR REPORT ANY DIFFERNECES DIRECTLY TO OUR AUDITORS USING
    THE ENCLOSED REPLY ENVELOPE.

    This is not a request for payment. Please do not send your remittance to our auditors.

    Yout prompt attention to this request will be appreciated.

    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $20,549,225.88
    Purchases from Apollo Shoes during the year 2014 totaled
    $122,826,158.60
    These amounts are correct except as noted below”
    The amounts appear right, but we entered into involuntary bankcruptcy on November 3. We told
    Apollo about this back at that time. We don’t know why they shipped us so many pairs in Late
    December (including over 1600 pair if size 23’s that we can even give away!). We didn’t order
    them and we can’t afford to send them back!

    Date : 1/14/2015 By : Action Jackson

    Tittle : Liquidation Coordinator


    Document Title: C-2-4
    Run for Your Life Shoes
    Attn: Account Payable Dept.
    5110 Speedway Drive
    Los Angeles, CA 90035

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
    ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
    THE ENCLOSED REPLY ENVELOPE.

    This is not a request for payment. Please do not send your remittance to our auditors.

    Yout prompt attention to this request will be appreciated.

    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $2,165,500.55
    Purchases from Apollo Shoes during the year 2014 totaled
    $2,165,500.55
    This balance is correct except as noted below:
    Yes, we made one purchase from Apollo during the year, bu we paid the entire amount on
    1/8/2015.

    Date : 1/14/2015 By : Justin Thompsom

    Title : Accounts Payable Coordinator


    Document Title: C-2-5
    Tread
    Attn: Accounts Payable Dept.
    Highway 67
    French Lick, IN 47432

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND COMPARE THE TO YOUR
    RECORDS OF YPUR ACCOUNT WITH US. IF THE INFORMATIONS IS NOT IN
    AGREEMENT WITH YOUR RECORDS, PLEASE STATE ANY DIFFERENCES BELOW
    AND RETURN DIRECTLY TO OUR AUDITORS IN THE RETURN ENVELOPE
    PROVIDED. IF THE INFORMATION IS CORRECT, NO REPLY IS NECESSARY.

    This is not a request for payment. Please do not send your remittance to our auditors.
    Yout prompt attention to this request will be appreciated.
    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $1,388.75
    Purchases from Apollo Shoes during the year 2014 totaled
    $3,091,017.74
    This balance is correct except as noted below:
    We were told in November that our account had already been credited for amount listed above
    for a return of 5 pairs of defective shoes. Total purchases agree with our records though.

    Date : 1/14/2015 By : Shoeless Joe


    Johanson Title : President,
    Tread Shoes
    Document Title: C-2-6
    Paul Bunion Footwear
    Attn: Account Payable Dept.
    Lone Mountain Trail
    P.O. Box 10558
    Big SKy, MT 59717

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
    ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
    THE ENCLOSED REPLY ENVELOPE.

    This is not a request for payment. Please do not send your remittance to our auditors.
    Yout prompt attention to this request will be appreciated.
    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $311,558,847.58
    Purchases from Apollo Shoes during the year 2014 totaled
    $29,270,632.63
    This balance is correct except as noted below:
    No problem ms noted.

    Date : 1/21/2015 By : Kevin Bunion


    Title : VP Finance, PBS
    Document Title: C-2-7
    Sassy Shoes
    Attn: Account Payable Dept.
    440 W. 53nd Strees
    New York, NY 10018

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
    ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
    THE ENCLOSED REPLY ENVELOPE.

    This is not a request for payment. Please do not send your remittance to our auditors.

    Yout prompt attention to this request will be appreciated.

    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $6,400,081.85
    Purchases from Apollo Shoes during the year 2014 totaled
    $15,178,041.85
    This balance is correct except as noted below:
    Yes, we owed it. This is the thied letter that we we’ve received from you people!!! Our sales are
    just running a little slowly this year, but we paid on the tenth, so quit hassling us!

    Date : 1/22/2015 By : Sassy Spinelli

    Title : Founder, Sassy Shoes


    Document Title: C-2-8
    International Soccer Federation
    Attn: Accounts Payable Dept.
    Birmingham Road
    Strafford-upon-Avon
    Warwhiekshire CV 34 6LT
    England

    Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
    statements. Part of this audit includes direct verification of customer balances.

    PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
    ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
    THE ENCLOSED REPLY ENVELOPE.

    This is not a request for payment. Please do not send your remittance to our auditors.
    Yout prompt attention to this request will be appreciated.
    Samuel Carboy

    Samuel Carboy, Controller

    The balance due Apollo Shoes as of December 31, 2014, is


    $1,222,359.56
    Purchases from Apollo Shoes during the year 2014 totaled
    $3,228,779.92
    This balance is correct except as noted below:
    The amounts are correct asstated. I don’t think we are going to buy any more though. The
    sirens keep going off prematurely and it’s causing our fans to riot.

    Date : 1/21/2015 By : FootsMCKinney


    Title : Equipment Manager, ISF

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