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A Comprehensive Evaluation of Apple Inc.'s Independent Audit Report for 2014

Analysis of Apple's 2014 audit report, evaluating financial compliance and reporting accuracy.

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    A Comprehensive Evaluation of Apple Inc.'s Independent Audit Report for 2014 TITLE PAGE APPLE INC. ABSTRACT "Evaluate the independent audit report of Apple Inc. for the year ending 2014, focusing on the role of internal and external auditors, the assessment of internal controls, and the compliance with generally accepted accounting principles (GAAP). Discuss the impact of the audit committee’s composition and responsibilities in ensuring transparency, and the significance of ethical standards in the auditing process. Additionally, analyze the types of audit assessments conducted by Apple Inc. and the implications of using computer - assisted audit techniques. Support your analysis with examples from Apple’s 10 - K and 14 - A filings." Word Count Requirement: "Write a detailed response of 1500 to 2000 words."

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    This is a report which is basically prepared in respect to Apple Inc. and the audit report and other statements of the company for the year ending 2014 are evaluated. A detailed evaluation of the independent audit report is being done. The constitution and functions of audit committee are being discussed and also the independent audit report of public accounting firm. All the discussions are being done on the basis of various references and form 10K and 14A of the company apple Inc. APPLE INC. Evaluation of the independent auditor’s report Type of audit report issued: The auditors of Apple inc. for the year ending September were the Ernst & Young LLP, independent registered public accounting firm. The audit was conducted by them in accordance with the public company accounting oversight board (United States). The audit was conducted in a manner to provide the reasonable assurance whether company was able to maintain the effective in ternal control in the financial reporting. The auditors of the company have obtained the understanding in regard to the internal control in the financial reporting, they have assessed whether the risk to material weakness exists in the organization or not. They have properly tested and analyzed the designing and the operation of the effectiveness of the internal risk in regard to the identified assessed risk. According to the standards of the public com pany accounting oversight board, the company had expressed an unqualified opinion on the consolidated financial statements for the year ending 2014. Conformity with generally accepted accounting principles:

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    The auditors of the company did not found any evidence which provided information that the company did not follow the generally accepted accounting principles. According to the annual report, the preparation of the financial statements and the disclosures in regard to the financial statements are made as per the generally accepted accounting principles. The internal control of the company is designed in a pattern to provide the reasonable assurance that the financial statements are prepared in accordance with the generally accepted accounting principles. Roles, responsibilities of internal auditor: 1. The evaluation and thus providing a reasonable assurance that risk management system, control and governance system are in accordance with the goals of the company. 2. They report the identified risk management issues and deficiencies in the internal control to the audit committee. 3. They evaluate the information security system and the risk exposures associated with it. 4. They evaluate the compliance regulatory program in accordance with the guidelines of the legal counselor 5. They help in maintaining the open communication system between the management and the audit committee. 6. They help in providing support to the anti fraud programs of the company. 7. They help in providing education to the employees and thus help in staff development. Objectives of internal auditor: 1. The objective of the internal auditor is to assist the board of members and the management in the discharge of duties in an effective manner. 2. They determine the accuracy of the recorded financial transactions.

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    3. They also concentrate on determining that the compliance policies in the organization are in accordance with the policies and procedures of the ministry and the laws and regulations of the government. 4. The objective of the internal auditor is to coordinate the efforts in the audit and also providing assistance to the external auditors of the company and the audit committee. 5. The objective of internal auditor is to ensure the verification in regard to the existence of the assets and also ensuring that proper protection is maintained in the organization in order to protect the assets from probable losses. Roles and responsibilities of external auditor: 1. The main role of the external auditors is to express an opinion that the financial statements are free from misstatements or not. 2. They provide the information in regard to the accountability of management performance by the shareholders of the company. 3. They provide assurance to the stakeholders that the financial statements are free from material misstatements and the errors. 4. They need to obtain the understanding on the environment, operations and the internal controls of the client. 5. The external auditors concentrate on obtaining sufficient evidence to form an opinion on the financial statements of the company. 6. The external auditors maintain an independent attitude towards the company and thus they are independent from the client and thus address the audit problems independently. Objectives of external auditor:

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