Document Tittle : C-2-1

Date : January 28, 2015

To : Darlane Wardlaw
From : Group 12
Subject: Apollo Shoes Audit of Account Receivable Memo
With regard to audits of trade accounts receivable, we decided to use positive and negative
confirmations to verify customer balances because we decided that we could not rely on Apollo's
control over this account. A positive confirmation simply asks the customer to respond to us by
stating whether their listed account balance is correct or not. We use this type of confirmation for all
customers with account balances in excess of $ 1,000,000. A negative confirmation asks the
customer to respond only if there is a problem with the registered account balance. We use this type
of confirmation for all customers with an account balance of $ 1,000,000 or less. We also ask
customers to confirm their total sales for the year as there are relatively few transactions for each
customer to see. This process resulted in 6 positive confirmations and 25 negative confirmations
being sent.
Of the confirmations that were sent, we received back six positive confirmations, along with one
negative one. The findings of each are listed below:
 Neutralizer - Customer records show that $ 1,388.75 more was due to be paid to Apollo than
indicated on the positive confirmation. Neutralizer made a check with Apollo on 28/12/14
for $ 3,053,144.23 for the 10 pallets of shoes it received.
 Mall-Warts - The customer stated that they had entered into an accidental bankruptcy on
11/03/14, which was notified by Apollo at the time. Against Mall-Warts' wishes, Apollo sent
a large shipment of shoes to Mall-Wart in late December (including over 1,600 pairs of size
23 shoes). Even though Mall-Warts believes that the balance stated on the positive
confirmation is correct, they did not order for the latest shipment and are currently unable to
ship items back to Apollo.
 Run for Your Life Shoes - Customers certify that they have made one purchase from Apollo
during 2014, but that they paid the entire balance as of 01/08/15.
 Tread - Customer certifies that they have returned five pairs of damaged shoes and has been
notified that their account has been credited for the return, which should amount to $
1,388.75, current registered balance. If not, the total purchases for the year are agreed with
the customer record.
 Paul Bunion Footwear - Customers do not see any problem with the positive confirmation
they have received.
 Sassy Shoes - Customers stated that they did have the balance stated on the positive
confirmation received, but they experienced some financial difficulties during the year
which caused payments to be slow. They also claim payment was sent on 01/10/15.
 International Soccer Federation - The customer confirms that the balance stated on their
positive confirmation is correct, but due to a problem with the product, does not intend to
purchase any more merchandise from Apollo.
Document Title: C-2-2
Neutralizer
1359 Central Boulevand
Derma, MS 39530
Attn: Account Payable Dept.

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Yout prompt attention to this request will be appreciated.

Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$3,051,755.48
Purchases from Apollo Shoes during the year 2014 totaled
$3,051,755.48
This balance is correct except as noted below:
Our records indicate that we owe $1388.75 more than indicated above. Wewrore a check to
Apollo on 12/28 for $3,053,144.23 for 10 pallets of shoes.

Date : 1/20/2015 By : Rudy Robinson

Title : Accounts Payable
Document Title: C-2-3
Mall- Warts
146 Boardwalk Drive
Atlantic City, NJ 08401
Attn : Accounts Payable Dept.

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
ACCURACY OR REPORT ANY DIFFERNECES DIRECTLY TO OUR AUDITORS USING
THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Yout prompt attention to this request will be appreciated.

Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$20,549,225.88
Purchases from Apollo Shoes during the year 2014 totaled
$122,826,158.60
These amounts are correct except as noted below”
The amounts appear right, but we entered into involuntary bankcruptcy on November 3. We told
Apollo about this back at that time. We don’t know why they shipped us so many pairs in Late
December (including over 1600 pair if size 23’s that we can even give away!). We didn’t order
them and we can’t afford to send them back!

Date : 1/14/2015 By : Action Jackson

Tittle : Liquidation Coordinator

Document Title: C-2-4
Run for Your Life Shoes
Attn: Account Payable Dept.
5110 Speedway Drive
Los Angeles, CA 90035

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Yout prompt attention to this request will be appreciated.

Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$2,165,500.55
Purchases from Apollo Shoes during the year 2014 totaled
$2,165,500.55
This balance is correct except as noted below:
Yes, we made one purchase from Apollo during the year, bu we paid the entire amount on
1/8/2015.

Date : 1/14/2015 By : Justin Thompsom

Title : Accounts Payable Coordinator

Document Title: C-2-5
Tread
Attn: Accounts Payable Dept.
Highway 67
French Lick, IN 47432

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND COMPARE THE TO YOUR
RECORDS OF YPUR ACCOUNT WITH US. IF THE INFORMATIONS IS NOT IN
AGREEMENT WITH YOUR RECORDS, PLEASE STATE ANY DIFFERENCES BELOW
AND RETURN DIRECTLY TO OUR AUDITORS IN THE RETURN ENVELOPE
PROVIDED. IF THE INFORMATION IS CORRECT, NO REPLY IS NECESSARY.

This is not a request for payment. Please do not send your remittance to our auditors.
Yout prompt attention to this request will be appreciated.
Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$1,388.75
Purchases from Apollo Shoes during the year 2014 totaled
$3,091,017.74
This balance is correct except as noted below:
We were told in November that our account had already been credited for amount listed above
for a return of 5 pairs of defective shoes. Total purchases agree with our records though.

Date : 1/14/2015 By : Shoeless Joe

Johanson Title : President,
Tread Shoes
Document Title: C-2-6
Paul Bunion Footwear
Attn: Account Payable Dept.
Lone Mountain Trail
P.O. Box 10558
Big SKy, MT 59717

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.
Yout prompt attention to this request will be appreciated.
Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$311,558,847.58
Purchases from Apollo Shoes during the year 2014 totaled
$29,270,632.63
This balance is correct except as noted below:
No problem ms noted.

Date : 1/21/2015 By : Kevin Bunion

Title : VP Finance, PBS
Document Title: C-2-7
Sassy Shoes
Attn: Account Payable Dept.
440 W. 53nd Strees
New York, NY 10018

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.

Yout prompt attention to this request will be appreciated.

Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$6,400,081.85
Purchases from Apollo Shoes during the year 2014 totaled
$15,178,041.85
This balance is correct except as noted below:
Yes, we owed it. This is the thied letter that we we’ve received from you people!!! Our sales are
just running a little slowly this year, but we paid on the tenth, so quit hassling us!

Date : 1/22/2015 By : Sassy Spinelli

Title : Founder, Sassy Shoes

Document Title: C-2-8
International Soccer Federation
Attn: Accounts Payable Dept.
Birmingham Road
Strafford-upon-Avon
Warwhiekshire CV 34 6LT
England

Our auditors, Anderson, Olds, and Watershed, are making their regular audit of our financial
statements. Part of this audit includes direct verification of customer balances.

PLEASE EXAMINE THE DATA BELOW CAREFULLY AND EITHER CONFIRM ITS
ACCURACY OR REPORT ANY DIFFERENCES DIRECTLY TO OUR AUDITORS USING
THE ENCLOSED REPLY ENVELOPE.

This is not a request for payment. Please do not send your remittance to our auditors.
Yout prompt attention to this request will be appreciated.
Samuel Carboy

Samuel Carboy, Controller

The balance due Apollo Shoes as of December 31, 2014, is

$1,222,359.56
Purchases from Apollo Shoes during the year 2014 totaled
$3,228,779.92
This balance is correct except as noted below:
The amounts are correct asstated. I don’t think we are going to buy any more though. The
sirens keep going off prematurely and it’s causing our fans to riot.

Date : 1/21/2015 By : FootsMCKinney

Title : Equipment Manager, ISF