The audit report and internal control evaluation. Apollo Shoes Inc Essay

The audit report and internal control evaluation. Apollo Shoes Inc - Essay Example The auditing process of financial statements and evaluation of internal control systems of Apollo shoes was perfect. This is a report of findings, and recordings of the audit firm as of 31st December 2011. The audit follows the basis on the international Standard of Auditing and general accepted audit standards of United States of America. Key target of the audit is to obtain a reasonable assurance on whether there are any material misstatements on the financial statements. This will lead to drawing an opinion to the shareholders regarding the state of financial records (Ainapure, 2011, p. 26). Background Apollo shoes Inc. is a leading company in the United States of America. In reference to the evaluation conducted by the audit company, the Apollo management team is highly competent with certified employees. The management team comprises of 13 members and an executive committee of three members. The company's revenue of the year ended 31st December 2011 $108 million. This is a 6% in crease in reference to the working papers of previous auditor. It also has over 600 full time employees, 3500 part-time graduates, and 1000 undergraduates. The company has many branches all around the States to increase the net revenue. In this financial year, the company won different awards as a result of its quality management strategies. This has raised the creation of a sustainable business environment in such a competitive economy. It proves to be among the best performing companies in this line. Accounting sampling and testing procedures The audit entailed different sampling and testing procedures. This is to provide material evidence before presenting the opinion to the shareholders and directors. Tracing the flow of transactions and authorization is the crucial task in auditing. This is because auditors will identify transaction initiation and completion by the company. The audit team also made a detailed compliance test seeing whether all guidelines within the company are functional. A test on the control system is pivotal in auditing; its helps the auditor to identify the extent of other tests. In reference to the audit team, it is evident that Apollo shoes management is competent in implementing these tools. This implementation is responsible for immaterial gaps in the company. The auditing team gives all recommendations and management action plans to cover these gaps. Risk Exposure From the audit analysis, internal auditors perform detailed risk analysis targeting all areas of concern of the company. The key target areas are cash inflows, grant activities, operating systems, level of external rules and regulation among others. The objective of evaluating risk exposure through the internal audit team is identifying all entities that should receive audit attention (Ainapure, 2011, p. 32). Scope The main aim of auditing the statements is to represent the shareholders in affirming the fairness of the statements. It also helps in determining whether th ey are in accordance with the accepted accounting standards of USA. The audit includes testing, examining basis, evidence on the supporting information, and disclosing the financial statements to all parties. It also includes a review of administration grant, safety, network security, and service centre. It covers the period from 1st January 2011 and 31st January of the same year. This is in reference to Apollo Shoes financial year. The report has made a combination of analytical review procedures on the financial statements (Ainapure, 2011, p. 36). Opinion In accordance with the financial statements presented by the management of Apollo shoes Company, the company’s financial statements are in line with the USA accounting standard. This is in reference to the financial records of the year ended 31st January

The role of strategic management Essay Example | Topics and Well Written Essays - 3500 words

The role of strategic management - Essay Example Orgniztions operte in rpidly chnging environment, nd for this reson it is vitl step to stipulte minor detils nd predict ll chnges needed for strtegy implementtion. BMW is Europen utomotive leder operting on the mrket since 1922. t the beginning of the 21st century, BMW is influenced by interntionl economic integrtion, removl of brriers to business nd trde nd incresed competition (BWM Home Pge. 2007). Following Hill & Jones (2004) strtegic mngement is importnt for successful orgniztionl performnce becuse it involves pre-determined course of ction which helps to provide purpose nd direction for members of n enterprise. The plnning process is ided by working in n environment which is conducive to it. Strtegic mngement influences its orgniztionl structure, processes nd reltions. BMW orgniztionl structure cn be identified s mtrix structure. Within the compny, the performnce of ll deprtments is closely relted to delegtion of uthority, but it includes ll res of mngement nd requires gret del more thn hnding uthority to subordintes (Hill & Jones 2004). The dvntge is tht it is esy to control ll ctivities nd implement generl nd unified policy. The disdvn tge is complicted "bureucrtic" structure which slows decision-mking nd chnge processes. Production nd sles re the first functions to be decentrlized nd finnce nd humn resources the lst. The degree of centrliztion is not esy to determine. Some decisions must be tken loclly nd mngement must decide wht re vitl decisions nd keep these, then delegte the rest. High degree of decentrliztion tkes plce in some production res where less checking is needed on decision, especilly if few people need be consulted on decision, or if the greter the number of functions ffected by decisions mde t lower levels (Hill & Jones 2004). Following Ry Zimmermn, Executive Director of BMW: The nine person Board of Directors establishes policy and overseas the overall operations of the BMW Motorcycle Owners of America. The Board holds the Executive Director responsible for the execution of the policies and daily operation of the club. there is also a "dotted line" relationship between some of the staff members and the different members of the Board. For example, our Treasurer and the Accountant work hand-in-hand on a number of projects related to financial reporting". This type of orgniztionl structure benefit overll well-being of business becuse it determines the nture of reltions, mkes possible the ppliction of the process of mngement nd cretes frmework of order nd commnd through which the ctivities of the orgniztion cn be plnned, orgnized, directed nd controlled (Hitt et l 2006). For instnce, size, geogrphicl seprtion of the deprtments or extended ctivities of BMW require decentrlized structure. Thus, BMW needs centrliztion to estblish common policies, but when employees know ll trditions they cn ct more independently (BWM Home Pge 2007, See ppendix Chrt 1). In this cse, strtegic mngement nd plnning gives the compny only sense of direction for the ctivities. Strtegic plns give brod guidelines towrds which more detiled nd specific plns re directed. The greter the time spn, the greter the number of mistkes. Present conditions re usully dominnt in the plnner's mind when the orgniztion initites pln nd these my be overstressed. lso, mny events re obviously unforeseen, but plnning cn be ided by techniques