Reference no: EM132661256

Question - Well, first let me congratulate you on your recent promotion. Although we have not worked on an engagement together before, I have heard many good things about you. I look forward to working with you on the new Apollo Shoes engagement. Things have already gotten started so you'll see that I've done quite a bit of the work but I really need your help. I have the client acceptance form on my desk but I haven't put it in the binder yet. I understand that this is your first engagement to work as an in-charge. Arnold Anderson will be the engagement partner; he is pretty sharp so you'll have to stay on your toes. As engagement manager, I'll try to help out as much as I can. Understand, however, that I am managing four other busy season engagements, so my interaction time with you will be limited. Taylor Crump is the staff associate assigned to the audit. For now, I want you to familiarize yourself with Apollo Shoes. I asked Taylor to complete a materiality memo, but it may be useful for you to do it as well as a way to get familiar with Apollo. I have a few questions for you to answer, it may seem basic but I find its the best way to get your feet underneath you. I have included all necessary documents in the binder.

Read over the 2019 10-K then please answer the following questions:

1) List three relevant facts about Apollo Shoes that you think might have an impact on the financial statement audit.

2) Define what is meant by a significant account or disclosure.

3) Identify at least two significant accounts or disclosures from the financial statements of Apollo Shoes. What makes each item significant?

4) Define what is meant by a relevant assertion.

5) Identify at least one relevant assertion for each of the significant accounts or disclosures previously identified from the financial statements of Apollo Shoes. What makes each assertion relevant?