The table below is an excerpt from Apple Inc.’s Statement of Shareholders’ Equity for its fiscal year ended September 30, 2017: 

Required:

a. How would the auditor verify the balances as of September 24, 2016? 

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 30, 2017, relate to the amounts shown in Apple’s balance sheet as of the same date?

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in millions, except number of shares, which are reflected in thousands) Common Stock and Accumulated Additional Paid-In Other Total Capital Retained Comprehensive Shareholders' Equity $128,249 Shares Amount Earnings Income/(Loss) Balance as of September 24, 2016 5,336,166 $31,251 $96,364 $634 Net income 48,351 48,351 Other comprehensive income/(loss) Dividends and dividend equivalents declared (784) (784) (12,803) (12,803) Repurchase of common stock Share-based compensation (246,496) (33,001) (33,001) 4,909 4,909 Common stock issued, net of shares held for employee taxes Tax benefit from equity awards, including transfer price adjustments Balance as of September 30, 2017 5,126,201 $35,867 36,531 (913) (581) (1,494) 620 620 $98,330 $(150) $134,047