Zoe Foster is the manager in charge of the audit

of Sky Hook, Inc., a publicly owned professional sports consulting organization located in Oklahoma City. Foster reviewed the draft audit report on Sky Hook that was prepared by the senior in charge of the audit, Frank D'Amato. Foster calls D'Amato to his office and tells him to redo the Audit report for Sky Hook due to mistakes that were made on the report.

 Several problems

incurs in this Audit

consisting of:
1. Risk not being assessed prior to the audit. 2. No reasonable assurance of detecting risk of

material misstatement. 3. No paperwork to support audit opinion. 4. No professional skepticism used throughout the audits . 5. Unable to gather qualitative evidence required to issue an unqualified report.

 A Failure by Frank to adequately plan the audit

work of Sky hook so a material misstatement is easily detected. There is no sufficient understanding of the entity and its internal controls by Frank. ( failed to do his homework) Failure to gather competent evidential matter through procedures
1) No inspection 2) No observation 3) No conformation to provide support for an opinion

To the Management of Sky Hook, Inc We have audited the accompanying balance sheet of Sky Hook, Inc., as of December 31, 2010, and the related statements of income and retain earnings for the year then ended. These statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards prepared by the American Institute of CPA's. Those standards require that we plan and perform the audir to determine whether the financial statements are free of material misstatement. An audit includes examining evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates that we made as well as the overall financial statement presentation. We believe that our audit provides a reasonable basis for an opinion. The company has excluded from inventories in the accompanying balance sheets certain obligations that in our opinion, should be included in order to conform with accounting principles generally accepted in the United States. As we have traced the inventory of Sky Hooks, we have determined that as of December 31, 2010, the inventories were overstated in the amount of 500,000 and also overstated as of December 31, 2009 in the amount of 750,000 for the year then ended. In Our Opinion, except for the discrepancies of the inventory obligation as discussed in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of Sky Hooks Inc. as of December 31, 2010, and the results of its operations ansdits cash flows for the year then ended in conformity with generally accepted accounting principles established by the Financial Accounting Standards Board. Sooner & Cowboys, LLC Oklahoma City, Oklahoma December 31, 2010