Week 2 Learning Team 2. Apollo Shoes Case Assignment Using the Apollo Shoes Case materials, available under the Assessment section of Week Two of your page, complete the following audit sections: 1. dramatic growth in unaudited net income over the past year 2. client doesn't want your firm (Anderson, Olds, and Watershed (AOW) to talk with the predecessor auditor 3. A labor strike is looming 4. Largest customer of Apollo Shoe's is suffering some financial difficulties. 5. help from untrained intern 6. intern does grunt work, vouching, gathering info, can not prepare workpapers, adjusting entries 7. Assistance from internal audit staff 8. Email communication 9. Assignments and memos are in bold print 10. page indexing suggestions are given, can we can adjust page numbering if we need to 11. case is realistic, but limitations remain 12. Can not follow-up directly with client personnel, you may need to rely on some evidence with which you may be uncomfortable. 13. Cut corners on audit sampling 14. Audit sampling plays a large role is actual audit practice 15. pay close attention to information disclosed early in the audit (BOD minutes) 16. It may play a big role in subsequent audit work. 17. bank cutoff statement in the cash workpapers and invoices used for valuing inventory may be useful later in the search for unrecorded liabilites. 18. bank confirmation contains information about long-term liabilites. 19. Project needs solution. a. Revenue and Expenses Before completing this section, review the material in the “Planning” section with emphasis on the Trial balances and Apollo Shoes Minutes; and the “Accounts Receivable” section with emphasis on the Audit of Accounts Receivable – confirmations. b. Payroll Before completing this section, review the material in the “Planning” section. .