Auditing Apollo Shoes Assignment Fall 2020 I. Introduction Apollo Shoes is an audit case designed to introduce you to the entire audit process, from planning the engagement to drafting the final report. You are asked to assume the role of a veteran of two-to-three busy seasons, in-charging for the first time. Communication between you and client personnel and other firm members takes the form of e-mail messages from the engagement partner (Arnold Anderson), the engagement manager (Darlene Wardlaw), an intern (Bradley Crumpler) assigned to do the grunt work, and the director of Apollos internal audit department (Karina Ramirez). The information is sequential in nature. In other words, you must pay close attention to information disclosed early in the audit (for example, in the Board of Directors minutes) as the information may play a role in subsequent audit work. Similarly, the bank cutoff statement in the cash workpapers and invoices used for valuing inventory may be useful later in the search for unrecorded liabilities. The bank confirmation contains information about long-term liabilities. 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?