I need help with the Apollo Shoes case. I need help with this case.

\fDate: 19 JAN 2015 15:37:42 +0000 From: "Darlene Wardlaw" Subject: Audit of Cash We received the bank confirmation and bank cutoff statement this morning. I left it in your mailbox at work. I would prefer that you audit cash rather than Bradley (let him stick to vouching documents to keep him out of trouble). A couple of points: 1. Don't forget to trace from the cutoff bank statement to the outstanding check list to make sure that the listing is complete. 2. There was an adjustment made at the end of the year to other income that looks odd. If I remember correctly, there was a transaction in investments for the same amount. You may want to take a closer look. 3. The last check written in December was check number 3621. They use duplicate checks so I was able to look at the carbons when I was out at Apollo on Saturday. Talk to you soon. DW STANDARD FORM TO CONFIRM ACCOUNT BALANCE INFORMATION WITH FINANCIAL INSTITUTIONS Apollo Shoes, Inc CUSTOMER NAME FINANCIAL INSTITUTION'S NAME AND ADDRESS We have provided to our accountants the following information as of the close of business on 12/31/2014, regarding our deposit and loan balances. Please confirm the accuracy of the information, noting any exceptions to the information provided. If the balances have been left blank, please complete this form by furnishing the balance in the appropriate space below.* Although we do not request nor expect you to conduct a comprehensive, detailed search of your records, if during the process of completing this confirmation additional information about other deposit and loan accounts we may have with you comes to your attention, please include such information below. Please use the enclosed envelope to return the form directly to our accountants. Twenty First National Bank Post Office Box 1 Shoetown, ME 00002 1. At the close of business on the date listed above, our records indicated the following deposit balance(s): ACCOUNT NAME ACCOUNT NO. INTEREST RATE BALANCE* General Cash Account 604-17-526-5 n/a 3,309,192.03 Payroll Account 604-29-016-3 n/a 0 Savings Account 604-03-739-8 3.2% 3,645,599.15 2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follows: ACCOUNT NO./ DESCRIPTION Note#106316 Line of Credit, Acct#7500438 BALANCE* DATE DUE INTEREST RATE DATE THROUGH WHICH INTEREST IS PAID DESCRIPTION OF COLLATERAL 12,000, 000 1/1/2015 8.15% 11/30/2014 Inventory 44,403, 000 2015(revol ving) 9.16% 11/30/2014 Inventory E.P Unum 1/9/2015 (Date) (Customer's Authorized Signature The information presented above by the customer is in agreement with our records. Although we have not conducted a comprehensive, detailed search of our records, no other deposit or loan accounts have come to our attention except as noted below. I.M. Rich (Financial Institution Authorized Signature) 1/13/2015 (Date) No exceptions noted. Please return this form directly to our accountants: Andersen, Olds, and Watershed, LLP 32nd Financial Avenue Shoetown, ME 00002 * Ordinarily, balances are intentionally left blank if they are not available at the time this form is prepared. Approved 1990 by American Bankers Association, American Institute of Certified Public Accounts, and Bank Administration Institute. Additional forms available from: AICPA - Order Department, P.O. Box 1003 NY, NY 10108-1003 Account 604-17-526-5 Page 1 of 2 Apollo Shoes, Inc. 100 Shoe Plaza Shoetown, ME 00001 *** Your Checking Acount 1-1-2015 THRU 1-15-2015 *** Your Previous Balance Additions 3,309,192.03 29,597,022.90 3 Deposits 2 Transfers from other accounts Deductions 55 Checks 3 Transfers to other accounts Your Current Balance CYC 01 MC 01 11,500,000.00 12,031,004.11 29,365,369.20 3,009,841.62 FREQ M0000 Deposits and Other Additions Date Amount 1/5/2015 1/5/2015 Date 440,782.45 6,009,285.91 Amount 1/13/2015 23,146,954.54 Check 3590 3603 3604 3606 3583 3584 3588 3592 3594 3595 3601 3605 3607 3608 3609 3613 Date 1/7/2015 1/7/2015 1/7/2015 1/7/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 1/10/2015 Checks and Other Withdrawals Check 3586 3587 3582 3591 3598 3597 3599 3602 3615 3612 3593 3610 3617 3619 3585 3589 Date 1/3/2015 1/3/2015 1/3/2015 1/4/2015 1/4/2015 1/5/2015 1/5/2015 1/5/2015 1/5/2015 1/5/2015 1/6/2015 1/6/2015 1/6/2015 1/6/2015 1/6/2015 1/6/2015 Amount 8,533.12 4,741.30 330,375.80 7,566.07 16,472.00 15,746.44 12,610.96 6,394.61 12,904.00 4,194.79 18,421.90 5,929.87 1,073.73 7,841.27 7,960.15 6,707.05 Amount 10,587.77 14,766.54 15,816.16 2,794.07 9,606.37 823.27 14,122.85 5,684.08 12,741.49 988.55 5,717.19 4,807.21 2,667,006.32 9,515.15 501.40 17,205.98 Account 604-17-526-5 Page 2 of 2 Checks and Other Withdrawals Check Date 3621 3596 3600 3611 3616 3614 3618 3620 3622 3623 3625 3626 Amount 1/10/2015 1/12/2015 1/12/2015 1/12/2015 1/12/2015 1/12/2015 1/12/2015 1/12/2015 1/13/2015 1/13/2015 1/13/2015 1/13/2015 11,137.19 10,014.94 200,000.00 1,266.85 9,338.02 14,366.46 13,377.14 2,566.30 6,683.93 2,937.13 124.81 15,216.88 Transfers to Other Accounts Date 1/7/2015 1/13/2015 1/14/2015 Amount 6,300,000.00 22,500,000.00 565,369.20 Account 604-03-739-8 604-03-739-8 604-29-016-3 Transfers from Other Accounts Date 1/10/2015 1/14/2015 Amount 3,500,000.00 8,000,000.00 Account 604-03-739-8 604-03-739-8 3627 3628 3629 3633 3635 3636 3624 3630 3631 3632 3634 Check Date Amount 1/13/2015 6,891.16 1/13/2015 6,025.43 1/13/2015 927.09 1/13/2015 6,924.96 1/13/2015 5,174.00 1/13/2015 585.28 1/14/2015 6,868.12 1/14/2015 8,419.69 1/14/2015 8,434,889.09 1/14/2015 1,117.19 1/14/2015 4,994.99 Date: 10 JAN 2015 13:02:47 +0000 From: "Karina Ramirez" Subject: PBC Schedules We've completed the schedules that we agreed to prepare in our audit planning meeting. I've left them on your worktable in the conference room. According to your instructions, we've marked them PBC for \"Prepared by Client.\" I've attached copies to this e-mail as well as posted them to your firm's intranet site as you directed. Let us know if you have any questions. I've also left some other documents that you requested last Friday, specifically copies of two bank deposit slips from early January that you requested for your accounts receivable work. Karina Karina Ramirez Director, Internal Audit Apollo Shoes, Inc. Apollo Shoes, Inc. B-1 Prepared by Reviewed by Cash Lead Schedule For Year Ended 12/31/2014 PBC 10100 Account Title Cash on Hand 10200 Regular Checking Account 10300 Payroll Checking Account 10400 Savings Account Acct # (Audited) Unaudited Balance Balance 12/31/2013 12/31/2014 $1,987.28 $2,275.23 $198,116.52 $557,125.92 $0.00 $0.00 $3,044,958.13 $3,645,599.15 $3,245,061.93 $4,205,000.30 Apollo Shoes Bank Reconciliation 12/31/2014 General Account Unadjusted book balance Bank Adjustments Amount to Balance Adjusted book balance Balance per bank statement Add Deposits in transit Deduct O/S Checks Adjustment to Balance Adjusted bank balance 226,750.12 0.00 330,375.80* Adjustment to 557,125.92balance posted to Cash and Controller's Clearing Account 3,309,192.03 440,782.45 -3,192,848.56 557,125.92 Payroll Account Unadjusted book balance Bank adjustments 0.00 0.00 Adjusted book balance 0.00 Balance per bank statement Add Deposits in transit Deduct O/S Checks Adjusted bank balance 0.00 598,341.59 -598,341.59 0.00 Apollo Shoes, Inc Outstanding Checks 31-Dec-14 PBC Check # 3583 3584 3585 3586 3587 3588 3589 3590 3591 3592 3593 3594 3595 3596 3597 3598 3599 3600 3601 3602 3603 3604 3605 3606 3607 3608 3609 3610 3611 3612 3613 3614 3615 3616 3617 3618 3619 3620 3621 Total Date 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 12/31/2014 Amount 9,606.37 823.27 7,960.15 8,533.12 4,741.30 14,122.85 6,707.05 10,587.77 7,566.07 5,684.08 18,421.90 12,741.49 988.55 10,014.94 15,746.44 16,472.00 12,610.96 200,000.00 5,717.19 6,394.61 14,766.54 15,816.16 4,807.21 2,794.07 2,667,006.32 9,515.15 1,501.40 5,929.87 1,266.85 4,194.79 17,205.98 14,366.46 12,904.00 9,338.02 1,073.73 13,377.14 7,841.27 2,566.30 11,137.19 3,192,848.56 Apollo Shoes, Inc Bank Deposit Slip Twenty First National Bank, Account #604-17-526-5 January 5, 2015 Customer Name Check Number Pay More Shoes Nuke Me Shoe Shack Trenchfoot Imelda's Closet Eight East Feet Lamour Neutralizer Bad Boy Shoes Wild Hair Shoes Big Bob's Shoe Store Total Deposit 16625 16949 17309 18544 11618 18369 15299 18608 12818 12085 14819 Check Amount $526,004.85 $35,028.59 $730,588.25 $85,534.25 $96,452.11 $45,258.22 $385,241.02 $3,053,144.23 $400,253.31 $252,769.26 $399,011.82 $6,009,285.91 Apollo Shoes, Inc Bank Deposit Slip Twenty First National Bank, Account #604-17-526-5 January 13, 2015 Customer Name Run For Your Life Shoes Hip Hop Shoes International Soccer Federation Walk About Doug's Shoes Custom Shoes Blue Bird Shoes Pump It Up Shoes Hop Scotch Shoes Sassy Shoes Evil Spirit Shoes Action Foot Shoes Paul Bunion Footware Shack's Shoe Shine Lock-Up Shoe Store Total Deposit Check Number 13289 14675 10531 13695 17097 14659 11500 11186 15820 19785 15759 10716 19851 523 16514 Check Amount $2,165,500.55 $695,542.21 $1,222,359.56 $932,653.33 $2,648.75 $5,996.13 $11,844.63 $3,375.54 $895,606.23 $5,765,081.85 $86,450.60 $793,544.22 $10,458,847.58 $3,000.00 $104,503.36 $23,146,954.54 Page