We have audited the accompanying consolidated balance sheets of Apple Inc. as of September 29, 2012 and September 24, 2011, and the related consolidated statements of operations, shareholders’ equity and cash flows for each of the three years in the period ended September 29, 2012. These financial statements are the responsibility of the Company’s management .Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and

disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Apple Inc. at September 29, 2012 and September 24, 2011, and the consolidated results of its operations and its cash flows for each of the three years in the period ended September 29, 2012, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Apple Inc.’s internal control over financial reporting as of September 29, 2012, based on criteria established in Internal Control—Integrated Framework issued by the committee of Sponsoring Organizations of the Treadway Commission and our report dated October 31, 2012 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

San Jose, California

October 31, 2012

In respect of questions that follow (1) give reasons for your choice (2) Give reasons why other choices are not appropriate

a. To whom is the report addressed?

1-Apple's senior management team

2-Ernst & Young's board of directors and shareholders

3-Securities and Exchange Commission

4-Apple's board of directors and shareholders

5-Ernst & Young's senior management team

b. What steps do auditors take to determine whether a company's financial statements are free from material misstatement?

1-Auditors assess the company's system of internal controls ensure the information was prepared in accordance to GAAP. Addtionally, auditors examine, on a test basis, evidence supporting the financial statement amounts and disclosures.

2-Auditors assess the company's system of internal controls ensure the information was prepared in accordance to GAAP. Addtionally, auditors examine each transaction that comprises the financial statement amounts and disclosures.

3-Auditors assess the company's system of internal controls ensure the information was prepared in accordance to the SEC. Addtionally, auditors examine, on a test basis, evidence supporting the financial statement amounts and disclosures.

4-Auditors assess the company's system of internal controls ensure the information was prepared in accordance to SEC. Addtionally, auditors examine each transaction that comprises the financial statement amounts and disclosures.

c. What is the nature of Ernst & Young's opinion?

1-Ernst & Young's opinion is that the financial condition of Apple is stable in all material respects.

2-Ernst & Young's opinion is that the financial condition of Apple is presented accurately in all material respects.

3-Ernst & Young's opinion is that the financial condition of Apple is presented error-free in all material respects.

4-Ernst & Young's opinion is that the financial condition of Apple is presented fairly in all material respects.

When an auditor's report notes that the financial statements present "fairly" the financial position of a company, it means a reasonable person would conclude that the financial statements are error-free.

1-True

2-False

d. What other opinion is Ernst & Young rendering?

1-Ernst & Young rendered an opinion on the company's system of internal controls.

2-Ernst & Young rendered an option about the financial health of the company.

3-Ernst & Young rendered an opinion on the effeciency of the company's operations.

4-Ernst & Young rendered a qualified opinion regarding the company's financial statements.

Why is this other opinion so important?

1-It insures the intregrity of the financial reporting system and preservation of the company's assets

2-It insures the financial stability of the company and continuance of the company's profitable performance.

3-It insures the intregrity of the financial reporting system and continuance of the company's profitable performance.

4-It insures the financial stability of the company and preservation of the company's assets

 

Answer rating: 100% (QA)

a To whom is the report addressed Answer Apples board of directors and shareholders Reason its a duty of auditor to present report to companies direct... View the full answer