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

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A Comprehensive Evaluation of Apple Inc.'s Independent AuditReport for 2014TITLEPAGEAPPLE INC.ABSTRACT"Evaluate the independent audit report of Apple Inc. for the year ending 2014, focusing on therole of internal and external auditors, the assessment of internal controls, and the compliancewithgenerallyacceptedaccountingprinciples(GAAP).Discusstheimpactoftheauditcommittee’s composition and responsibilities in ensuring transparency, and the significance ofethical standards in the auditing process. Additionally, analyze the types of audit assessmentsconducted 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 otherstatements of the company for the year ending 2014 are evaluated. A detailed evaluation of theindependent audit report is being done. The constitution and functions of audit committee arebeing discussed and also the independent audit report of public accounting firm. All thediscussions are being done on the basis of various references and form 10K and 14A of thecompany apple Inc.APPLE INC.Evaluation of the independent auditor’s reportType 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 accordancewith the public company accounting oversight board (United States). The audit was conducted ina manner to provide the reasonable assurance whether company was able to maintain theeffective internal control in the financial reporting. The auditors of the company have obtainedthe understanding in regard to the internal control in the financial reporting, they have assessedwhether the risk to material weakness exists in the organization or not. They have properly testedand analyzed the designing and the operation of the effectiveness of the internal risk in regard tothe identified assessed risk. According to the standards of the public company accountingoversight board, the company had expressed an unqualified opinion on the consolidated financialstatements 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 informationthat thecompany did not follow the generally accepted accounting principles. According to the annualreport, the preparation of the financial statements and the disclosures in regard to thefinancialstatements are made as per the generally accepted accounting principles. The internal control ofthe company is designed in a pattern to provide the reasonable assurance that the financialstatements are prepared in accordance with the generally accepted accounting principles.Roles, responsibilitiesof 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 controlto 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 ofthe legal counselor5.They help in maintaining the open communication system between the management andthe 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.Theobjective oftheinternalauditoristoassisttheboard ofmembersandthemanagement 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 arein accordance with the policies and procedures of the ministry and the laws andregulations of the government.4.The objective of the internal auditor is to coordinate the efforts in the audit and alsoproviding 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 ofthe assets and also ensuring that proper protection is maintained in the organization inorder 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 financialstatements are free from misstatements or not.2.They provide the information in regard to the accountability of management performanceby the shareholders of the company.3.They provide assurance to the stakeholders that the financial statements are free frommaterial misstatements and the errors.4.They need to obtain the understanding on the environment, operations and the internalcontrols of the client.5.The external auditors concentrate on obtaining sufficient evidence to form an opinion onthe financial statements of the company.6.The external auditors maintain an independent attitude towards the company and thusthey are independent from the client and thus address the audit problems independently.Objectives of external auditor:

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