Audit Program Design Part INameCourseInstructorDate Audit Program Design Part IAnderson, Olds, and WatershedCertified Public AccountantMr. Larry LancasterChairman, President and CEOApollo Shoes, IncShoetown, MEAugust 21, 2014RE: SOX Section 404 Consulting Engagement LetterDear Mr. Lancaster,The aim of this engagement letter is to highlight on Sarbanes-Oxley Act Section 404 (SOX 404) consulting services to be provided based on our previous meeting and conversation. Anderson, Olds, and Watershed, will represent you in the aforementioned matter. This letter will also highlight on internal controls at Apollo Shoes and how this affects the audit responsibility and internal risks identified. Additionally, it will also touch on our responsibility in detecting and reporting fraud. Audit procedures- internal control In carrying out the audit, the audit team will seek to understand the internal control in Apollo Shoes, as this will facilitate audit planning and carrying out audit procedures. We believe that internal control at present is sufficient to enable the team to carry out auditing. However, in case we encounter internal control deficiencies, we will inform the management about these concerns, with audit team members also being briefed on the prevailing circumstances. We will also seek to understand the design of the internal control system, as this will enable us to use test of controls on transactions. This is an important aspect of the audit meant to understand the validity of transactions, and also identify whethe...