Case Study Of KPMG

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Recommended: Internal and External Audit of Apple

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 …show more content…

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

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