We received the bank confirmation and bank cutoff statement this morning from Apollos primary bank. I left both documents in your mailbox at the office. I would prefer that you audit cash rather than Timothy (let him stick to vouching documents to keep him out of trouble). A couple of points:

Dont forget to trace from the cutoff bank statement to the outstanding check list to make sure that the listing is complete and accurate.

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.

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.

STANDARD FORM TO CONFIRM ACCOUNT

BALANCE INFORMATION WITH FINANCIAL INSTITUTIONS

Apollo Shoes, Inc

CUSTOMER NAME

FINANCIAL INSTITUTION'S NAME AND ADDRESS

Twenty First National Bank

Post Office Box 1

Shoetown, ME 00002

We have provided to our accountants the following information as of the close of business on 12/31/2017, 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.

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

Payroll Account

Savings Account

604-17-526-5

604-29-016-3

604-03-739-8

n/a

n/a

3.2%

3,309,192.03

0

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

BALANCE*

DATE DUE

INTEREST

RATE

DATE THROUGH WHICH INTEREST IS PAID

DESCRIPTION OF COLLATERAL

Note#106316

Line of Credit,

Acct#7500438

12,000,000

44,403,000

1/1/2018

20158(revolving)

8.15%

9.16%

11/30/2017

11/30/2017

Inventory

Inventory

E.P Unum 1/9/2018

(Customer's Authorized Signature (Date)

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 1/13/2018

(Financial Institution Authorized Signature) (Date)

EXCEPTIONS AND OR COMMENTS

No exceptions noted.

Please return this form directly to our accountants:

Andersen, Olds, and Watershed, LLP

32nd Financial Avenue

Shoetown, ME 00002

Apollo Shoes, Inc.

100 Shoe Plaza

Shoetown, ME 00001

*** Your Checking Account 1-1-2018 THRU 1-15-2018 ***

Your Previous Balance

3,309,192.03

Additions

3 Deposits

29,597,022.90

2 Transfers from other accounts

11,500,000.00

Deductions

55 Checks

12,031,004.11

3 Transfers to other accounts

29,365,369.20

Your Current Balance

3,009,841.62

CYC

MC

FREQ

1

1

M0000

Deposits and Other Additions

Date

Amount

Date

Amount

1/3/18

440,782.45

1/13/18

23,146,954.54

1/5/18

6,009,285.91

Checks and Other Withdrawals

Check

Date

Amount

Check

Date

Amount

3586

1/3/18

8,533.12

3590

1/7/18

10,587.77

3587

1/3/18

4,741.30

3603

1/7/18

14,766.54

3582

1/3/18

330,375.80

3604

1/7/18

15,816.16

3591

1/4/18

7,566.07

3606

1/7/18

2,794.07

3598

1/4/18

16,472.00

3583

1/10/18

9,606.37

3597

1/5/18

15,746.44

3584

1/10/18

823.27

3599

1/5/18

12,610.96

3588

1/10/18

14,122.85

3602

1/5/18

6,394.61

3592

1/10/18

5,684.08

3615

1/5/18

12,904.00

3594

1/10/18

12,741.49

3612

1/5/18

4,194.79

3595

1/10/18

988.55

3593

1/6/18

18,421.90

3601

1/10/18

5,717.19

3610

1/6/18

5,929.87

3605

1/10/18

4,807.21

3617

1/6/18

1,073.73

3607

1/10/18

2,667,006.32

3619

1/6/18

7,841.27

3608

1/10/18

9,515.15

3585

1/6/18

7,960.15

3609

1/10/18

1,501.40

3589

1/6/18

6,707.05

3613

1/10/18

17,205.98

467,473.06

2,793,684.40

Checks and Other Withdrawals

Check Date Amount Check Date Amount

3621 1/10/2018 11,137.19 3627 1/13/2018 6,891.16

3596 1/12/2018 10,014.94 3628 1/13/2018 6,025.43

3600 1/12/2018 200,000.00 3629 1/13/2018 927.09

3611 1/12/2018 1,266.85 3633 1/13/2018 6,924.96

3616 1/12/2018 9,338.02 3635 1/13/2018 5,174.00

3614 1/12/2018 14,366.46 3636 1/13/2018 585.28

3618 1/12/2018 13,377.14 3624 1/14/2018 6,868.12

3620 1/12/2018 2,566.30 3630 1/14/2018 8,419.69

3622 1/13/2018 6,683.93 3631 1/14/2018 8,434,889.09

3623 1/13/2018 2,937.13 3632 1/14/2018 1,117.19

3625 1/13/2018 124.81 3634 1/14/2018 4,994.99

3626 1/13/2018 15,216.88

Date Amount Account

1/7/2018 6,300,000.00 604-03-739-8

1/13/2018 22,500,000.00 604-03-739-8

1/14/2018 565,369.20 604-29-016-3

Transfers from Other Accounts

Date Amount Account

1/10/2018 3,500,000.00 604-03-739-8

1/14/2018 8,000,000.00 604-03-739-8

Date: 10 JAN 2018 13:02:47 +0000

From: "Karina Ramirez"

Subject: PBC Schedules

Weve completed the schedules that we agreed to prepare in our audit planning meeting. Ive left them on your worktable in the conference room.

According to your instructions, weve marked them PBC for Prepared by Client. Ive attached copies to this e-mail as well as posted them to your firms intranet site as you directed. Let us know if you have any questions.

Ive 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

Apollo Shoes, Inc.

Cash Lead Schedule

Prepared by

For Year Ended 12/31/2017

Reviewed by

PBC

(Audited)

Unaudited

Balance

Balance

Acct #

Account Title

12/31/16

12/31/17

10100

Cash on Hand

$1,987.28

$2,275.23

10200

Regular Checking

$198,116.52

$557,125.92

10300

Payroll Checking

$0.00

$0.00

10400

Savings

$3,044,958.13

$3,645,599.15

$3,245,061.93

$4,205,000.30

Apollo Shoes

Bank Reconciliation

12/31/17

General Account

Unadjusted book balance

226,750.12

Bank Adjustments

0

Amount to Balance

330,375.80

* Adjustment to balance posted to Cash and Controller's Clearing Account

Adjusted book balance

557,125.92

Balance per bank statement

3,309,192.03

Add Deposits in transit

440,782.45

Deduct O/S Checks

-3,192,848.56

Adjustment to Balance

Adjusted bank balance

557,125.92

Payroll Account

Unadjusted book balance

0

Bank adjustments

0

Adjusted book balance

0

Balance per bank statement

0

Add Deposits in transit

598,341.59

Deduct O/S Checks

-598,341.59

Adjusted bank balance

0

Apollo Shoes, Inc

Outstanding Checks

31-Dec-17

PBC

Check #

Date

Amount

Check #

Date

Amount

3583

12/31/17

9,606.37

3606

12/31/17

2,794.07

3584

12/31/17

823.27

3607

12/31/17

2,667,006.32

3585

12/31/17

7,960.15

3608

12/31/17

9,515.15

3586

12/31/17

8,533.12

3609

12/31/17

1,501.40

3587

12/31/17

4,741.30

3610

12/31/17

5,929.87

3588

12/31/17

14,122.85

3611

12/31/17

1,266.85

3589

12/31/17

6,707.05

3612

12/31/17

4,194.79

3590

12/31/17

10,587.77

3613

12/31/17

17,205.98

3591

12/31/17

7,566.07

3614

12/31/17

14,366.46

3592

12/31/17

5,684.08

3615

12/31/17

12,904.00

3593

12/31/17

18,421.90

3616

12/31/17

9,338.02

3594

12/31/17

12,741.49

3617

12/31/17

1,073.73

3595

12/31/17

988.55

3618

12/31/17

13,377.14

3596

12/31/17

10,014.94

3619

12/31/17

7,841.27

3597

12/31/17

15,746.44

3620

12/31/17

2,566.30

3598

12/31/17

16,472.00

3621

12/31/17

11,137.19

3599

12/31/17

12,610.96

3600

12/31/17

200,000.00

TOTAL

$3,192,848.56

3601

12/31/17

5,717.19

3602

12/31/17

6,394.61

3603

12/31/17

14,766.54

3604

12/31/17

15,816.16

3605

12/31/17

4,807.21

Apollo Shoes, Inc

Bank Deposit Slip

Twenty First National Bank, Account #604-17-526-5

5-Jan-18

Customer Name

Check Number

Check Amount

Pay More Shoes

16625

$526,004.85

Nuke Me

16949

$35,028.59

Shoe Shack

17309

$730,588.25

Trenchfoot

18544

$85,534.25

Imelda's Closet

11618

$96,452.11

Eight East

18369

$45,258.22

Feet Lamour

15299

$385,241.02

Neutralizer

18608

$3,053,144.23

Bad Boy Shoes

12818

$400,253.31

Wild Hair Shoes

12085

$252,769.26

Big Bob's Shoe Store

14819

$399,011.82

Total Deposit

$6,009,285.91

Apollo Shoes, Inc

Bank Deposit Slip

Twenty First National Bank, Account #604-17-526-5

13-Jan-18

Customer Name

Check Number

Check Amount

Run For Your Life Shoes

13289

$2,165,500.55

Hip Hop Shoes

14675

$695,542.21

International Soccer Federation

10531

$1,222,359.56

Walk About

13695

$932,653.33

Doug's Shoes

17097

$2,648.75

Custom Shoes

14659

$5,996.13

Blue Bird Shoes

11500

$11,844.63

Pump It Up Shoes

11186

$3,375.54

Hop Scotch Shoes

15820

$895,606.23

Sassy Shoes

19785

$5,765,081.85

Evil Spirit Shoes

15759

$86,450.60

Action Foot Shoes

10716

$793,544.22

Paul Bunion Footware

19851

$10,458,847.58

Shack's Shoe Shine

523

$3,000.00

Lock-Up Shoe Store

16514

$104,503.36

Total Deposit

$23,146,954.54