Apollo denied our request to speak with the predecessor auditors because of "litigation concerns." I've looked at the $8-K$ filed by Apollo and the auditors referenced in the $10-K.$ I didn't attach a copy because it didn't say much, just something about "incongruent goals," blah, blah, blah. Against my advice, Arnold decided to accept the engagement anyway. My advice to you for this engagement is to keep your eyes open!

The good news is that the predecessor auditors, Smith and Smith, CPAs, have a good reputation, so you can use last year's audited numbers from the $10-K.$ The bad news is that we don't have access to prior year audit documentation. You'll need to come up with programs for the substantive audit procedures for each of the functional balance sheet areas $($indicated with an asterisk $(*)$ below$).$ You can perhaps get them from an old auditing textbook. My preference is to place the audit programs at the beginning of each section. Label the sections as follows:

GA series $($GA$-1,$ GA$-2,$ etc.$)$

ICC series

ICD series

ICP series

A series

B series$*$

C series$*$

D series$*$

E series$*$

F series$*$

I series$*$

L series$*$

N series$*$

Q series$*$

R series$*$

X series$*$

General and Administrative $($Planning$)$

Revenue$/$Collection Cycle Internal Control Evaluation

Purchasing$/$Disbursements Internal Control Evaluation

Payroll Internal Cohtrol Evaluation

Trial Balance$/$Financial Statements$/$Adjustments$/$Footnotes

Cash Substantive Audit Documentation

Accounts Receivable Substantive Audit Documentation

Inventory Substantive Audit Documentation

Prepaids Substantive Audit Documentation

Property, Plant and Equipment Substantive Audit Documentation

Other Assets Substantive Audit Documentation

Current Liabilities Substantive Audit Documentation

Notes Payable Substantive Audit Documentation

Stockholders' Equity Substantive Audit Documentation

Revenue Substantive Audit Documentation

Expenses Substantive Audit Documentation

Because we are so understaffed during busy season, you are going to have to perform the bulk of the audit yourself. I was only able to get you a spring intern $($Timothy Crumpler$)$ from Caledonia State University $($heck$,$ I didn't even know they had an accounting program!$).$ He is the only unassigned person in the office right now. Because I am unsure of his training, I suggest that you only use him for "grunt work." Also, I checked into the background and experience of Karina Ramirez, Apollo's Internal Auditor. Apparently, she was an auditor with a Big $4$ firm for $8$ years before coming to Apollo and has served on the state CPA society's ethics committee. I also went through her audit documentation; they appear to be top$-$notch. Lastly, she reports directly to the Audit Committee, so we can rely on her to be objective. I think we can rely on her work during our engagement.