In this week, for the chosen publicly traded company(Apple,Inc.) you have been using in your course...

Question

In this week, for the chosen publicly traded company(Apple,Inc.) you have been using in your course project, answer the following questions:

Discuss the type of audit error (i.e. Type I Error, etc.) that may exist with the internal control weaknesses.

If undetected, what could have been some of the ramifications?

Analyze whether the management needed to restate prior-year financial statements because of this internal control weakness.

If restated, how did management and the auditor disclose this restatement? If not restated, what was the reason?

What are some of the uncollectible accounts of this company? What are some of the audit tests for the write-off of these uncollectible accounts?

Present your answers in a three to four-page Microsoft Word document.

Khushboo · Accepted Answer

Brief introduction about selected entity
We have selected Apple Inc as the company for analysis of weakness in internal control. Apple Inc. is a US based company which is having shares listed on BASDAQ. The company is having its head office at Cupertino, California. The company is mainly in technology sectors and one of the largest mobile manufacturer across the globe. The company is operating through various models such as online sales, own stores, retail stores, franchise store etc. and the major famous products of the entity are AirPods, iPad, Macbook and watches etc. and the products of the company are having their own class. The company is also one of largest PC manufacturing company and the auditor of the company is Ernst and Young LLP which is one of the largest public accounting firm in Big4 group. The entity is also providing services along with sale of products and the total assets of the group are $100 billion approx. in year 2022. Further, Apple Inc is also having strong internal controls in place and the auditor has issued unqualified report for year 2022.
Analysis of efficiency and transparency of internal controls established and major weakness reported by the entity in internal controls and difference of opinion between management and auditor
It is necessary that the management of an organization and auditor should perform independent testing of effectiveness of internal controls and accordingly the auditor should report the same in its audit report. In case of Apple Inc. the organization is not having any disagreement with auditor for effectiveness of internal controls because the entity has followed all the guidelines and disclosed the appropriateness and effectiveness of internal controls and there is no error found by the auditor in financial statements. Under Item 9,

In this week, for the chosen publicly traded company(Apple,Inc.) you have been using in your course project, answer the following questions: Discuss the type of audit error (i.e. Type I Error, etc.)...

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