«Auditing»
Galoyan Shushanik
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•Apple Inc. is an American multinational technology company headquartered in Cupertino, California,
that designs, develops, and sells consumer electronics, computer software, and online services.
•Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell
personal computers. It was incorporated as Apple Computer, Inc. in January 1977, and was renamed as
Apple Inc. in January 2007 to reflect its shifted focus toward consumer electronics. Apple (NASDAQ:
AAPL) joined the Dow Jones Industrial Average in March 2015.

Fiscal year is October-September 2015
All values USD
Sales
More than 233 B
Net Income
More than 57 B
Cash-Flow of operating activities
More then 81 B
Total Assets
89 B










•The smartphone industry is dominated by Apple and Samsung, that took together 88.1 percent of the
$215 billion profit that was generated in this industry over the last six years.
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•Apple have top 200 suppliers, including component providers and others representing at least 97
percent of procurement expenditures for materials, manufacturing, and assembly of products
worldwide in 2015. For example.
1.3M Co.
2.Austria Microsystems (AMS AG)
3.Broadway Industrial Group Ltd
4.Career Technology (Mfg.) Co. Ltd
5.Foxconn Interconnect Technology
6......
•

•Target audience between age 25-45.
•First focus on middle and upper income individuals.
• Secondary focus is on students.
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•Apple Products and Consumer Laws in the United Kingdom
•Under consumer laws in the UK, consumers are entitled to a free of charge repair or replacement,
discount or refund by the seller, of defective goods or goods which do not conform with the
contract of sale. For goods purchased in England or Wales, these rights expire six years from
delivery of the goods and for goods purchased in Scotland, these rights expire five years from
delivery of the goods.

•Apple websites will allow the customers to purchase their products like iPods, laptops mobile,
directly through the apple online. •Apple stores many cities have a building store either
free-standing or in a shopping mall. •Large electronics /computer sell apple products in their
store as well as online amzon.com also sells most apple products •By the help of the media and
giving advertisement and promotion will attract the buyer to purchase the product 9 of 16
•

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Apple Store
Apple Online Store
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Apple premium reseller

•Aim - Broad market reach
•Apple’s basic business strategy is broad differentiation. This generic strategy focuses on key
features that differentiate the company and its products from competitors. Through the broad
differentiation generic strategy, Apple stands out in the market.
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•The critical business processes for Apple relating to the business strategy include:
1. innovation
2.supply chain process
3.the research and development process
4.the marketing processes within the company.
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•The accounting information associated with the critical business processes include:
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1.The cost of marketing
2.Costs of investment in research and development
3.The sales revenue data on the income statement.
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•Apple uses GAAP to report the accounting information related to the critical business processes.
•GAAP helps in providing the disclosure ofthe issues and information relating to the significant
business processes.
•The risk of material misstatement identifies the potential for errors and adverse reporting of the
financial information and data (Apple Annual Report, 2015).
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