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Internal and External Audit of Apple
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As of February 2009, Apple, Inc appointed Ernest and Young as their auditors replacing KPMG which audited the books of the company for more than a decade (Madway, 2009). As per the annual report of Apple, the auditor’s report states that both the financial statements and internal controls over the financial reporting have been audited based on the established criteria and the relevant financial reporting standards. The firm states that both financial statements and internal controls over financial reporting are the responsibility of the management. The firm’s job is to provide the opinions on both financial statements and internal control over financial reporting based on the audit.
A standard audit procedure includes the examining of the financial statements prepared in the light of relevant accounting and reporting standards and evaluating the overall presentation of the financial statements. On the other hand, internal control over financial reporting is a standard procedure by which assurance is provided regarding the reliable preparation of financial statements and their presentation for external purposes in accordance with financial standards. The firm conducted the audit in accordance with the rules which were in compliance with the statute. After conducting the audit, the firm was of the opinion that the company effectively maintained all
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The decision was challenged by Samsung Electronics in the district court and the amount was reduced to $930 million. The decision of district court was subsequently reversed and affirmed in part by the Federal circuit. The damages later stood at $548 million while the decision for supplemental damages and damages owed for products is still pending. The company has not recognized the stated amount owing to the reason that the actual value is to be decided in the near future and it is subject to further
The company has a responsibility to establish and implement internal and external controls for proper accounting reporting. Target Corporation has done a good job of developing these controls and thus the accounting has been reliable and accurate. To assist in a audit of the company, it must establish substantive procedures that can follow up on the EPS accounting policy. A testing to confirm events and their occurrence would be helpful to ensure that the events and transactions have actually occurred and are recorded in the financial statements accordingly.
Goldman Sach’s rise to investment banking prominence was through a formula that entailed exemplary foresight, a committed group of diverse leaders, and the fostering of a winning culture. As a result of the firm’s increasing holdings and global size, Goldman Sachs became concerned with the need to expand on more well-developed leader-managers which would better prepare to meet the complex needs that the company was facing. Coupled with this was the complexity of the time. Investment banks were hiring through a non-tradional workforce due to the increasing labor pooling competition, sometimes referred to as the “War for Talent” (Snook, 2007, p. 2). Not only were there
Ernst & Young performed an audit of the consolidated balance sheets and the related consolidated statements of income, shareholders' equity and cash flows for each of the three years in the period ending January 31, 2006 for the Wal-Mart Stores, Inc. and January 28, 2006 for the Target Corporation. The responsibility of Ernst & Young is to express an opinion on the financial statements given by Wal-Mart and Target, holding both corporations responsible that the statements being audited are accurate and true. The audits have to be in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB), which require that the audit must have sufficient evidence that the financial statements do not contain any false material.
The trial judge reduced the final verdict to $640,000.Her
According to the Board of Education, academically or intellectually gifted students are students that perform in high levels of accomplishment, which are compared to their age, experience or environmental group. To further educate, I will discuss different perspectives, the cost of educating a AIG student and the education that is required to teach the student. The purpose of the AIG program is not to make the more work for the student but to go deeper into the subject of the specialization.
The organization's history can be traced through the names of its principal founding members - whose initials form the name "KPMG."
Once you obtain a company's past annual reports, review the most recent report first. At the back of the report, you will find the name of the auditor, somebody like Smith and Smith Accounting. Reputable companies use a certified public accountant to show that the accounting methods used in the report conform to "generally accepted accounting principles."
Being a student of Information Management, soon after my graduation, I would like to position myself as a business consultant in a reputed multinational firm. The role of a business consultant in an organization possesses significant importance as it helps to understand the customer need and create business to the company. Furthermore, information technology is growing to new heights every day and it is more pervasive and affordable. Piccoli’s four components of information systems are most important to any organization. Of the four, Technology and process combine in to technical subsystem and People and structure to form Social subsystem. It is important for an information professional to understand the challenges in each of these components
The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit
In order to compete, FMCG companies need to continually come up with new ideas for packaging, marketing, advertising and communicating their brands. Equally, FMCG companies are continually creating new brands – 40% of brands on the top 100 list twenty years ago have already been replaced by new names today. If you are someone looking for a fast paced, innovative work environment, then FMCG is for
KPMG’s culture is strengthen by a strong set of values and supporting policies and processes that enable the right attitudes and behaviours that penetrate throughout the network, starting from the very top. The firm promote a culture in which consultation is recognized as strength.
Judgement is a notion of relevance and reliability in developing and applying accounting policies. It is a requirement of management that they exercise a high degree of professional judgement when selecting appropriate accounting policies in the preparation of financial statements that is relevant to decision-making and assessment needs of users. Management should also consider the applicability of IFRS and AASB in dealing with similar and related issues and then the definitions, recognition criteria in the Conceptual Framework when there is no IFRS standard or interpretation in certain circumstances that are specifically applicable. Management may also consider the most current pronouncements of other standard-setting bodies to the extent that do not conflict with IFRS and AASB in developing accounting standards and accepted industry practices by using a similar conceptual framework.
PPG Industries, Inc. competes globally in 60 different countries across six different business units. They are described as a multinational enterprise or MNE. According to Sundaram and Black, “An MNE is any enterprise that carries out transactions in or between two sovereign entities, operating under a system of decision making that permits influence over resources and capabilities, where the transactions are subject to influence by factors exogenous to the home country environment of the enterprise,” (Sundaram and Black, 1992). PPG’s vision is, “to continue being the world 's leading coatings and specialty products company with a focus on sustainability to ensure the success and lasting presence of our company for the benefit of our customers, our employees, our shareholders, our neighbors and our suppliers and act in a way that helps to ensure the longevity and resilience of our environment, our economies and our society,” (“Sustainablity at PPG,” n.d). PPG’s diverse heritage expands globally and employees over 40,000 employees. Chuck Bunch, says, “As PPG continues to grow around the world, our customer, suppliers, and employees are becoming much more diverse. To achieve our goal of profitable growth, we must understand our customers,
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.