The table below is an excerpt from Apple Inc.’s Statement of Shareholders’ Equity for its fiscal year ended September 25, 2021: 

a. How would the auditor verify the balances as of September 26, 2020? 

b. What would the auditor do to evaluate the amount shown as Net Income? 

c. What sources of evidence might the auditor use to satisfy the occurrence objective for each of the following? 

(1) Repurchase of common stock.

(2) Share-based compensation.

(3) Common stock issued.

How should the amounts shown as of September 25, 2021, relate to the amounts shown in Apple’s balance sheet as of the same date?

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in millions, except number of shares, which are reflected in thousands) Common Stock and Additional Paid-In Capital Shares Amount Earnings Balance as of September 26, 2020 16,976,763 $50,779 $14,966 Net income 94,680 Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued (656,340) 106,363 8,108 1,105 (2,627) Retained Comprehensive Income/(Loss) ($406) (14,431) (85,502) Common stock withheld related to net share settlement of equity awards Balance as of September 25, 2021 16,426,786 $57,365 $5,562 Accumulated Other (4,151) 569 $163 Total Shareholders' Equity $65,339 94,680 569 (14,431) (85,502) 8,108 1,105 (6,778) $63,090