Reference no: EM132690076

Report of Independent External Auditor

Question a) Who is the corporation's independent auditor and in what city is it located?

Earnest and Young LLP, San Jose, California

Question b) What is the first year this firm audited the company?

2009

Question c) Does the auditor believe the financial statements were presented fairly? What statements in the auditor's report support your conclusion?

Auditor's believe that financial statements are fairly presented. " In our opinion, the financial statements present fairly, in all material respects, the financial position of Apple Inc. at September 28, 2019 and September 29, 2018, and the results of its operations and its cash flows for each of the three years in the perios ended September 28, 2019, in conformity with U.S. generally accepted accounting principles".

Question d) Does the auditor think the company's internal control system is adequate? What statements in the auditor's report support your conclusion?

Auditor's have given an unqualified opinion on adequacy of internal control.

" We also have auditrd, in accordance with the standards of the Public Company Accounting Oversight Board (united States) (the "PCAOB"), Apple inc.'s internal control over financial reporting as of September 28, 2019, based on criteria established in internal Control- Integrated Framework issued by the committee of sponsoring Organizations of the Treadways Commission (2013 framwork) and our report dates October 30, 2019 expressed an unqualified opinion thereon."

Question e) How does this report differ from one issued for a non-public company?

Question f) What is the Critical Audit Matter disclosed in the opinion?

"Europen Commission State Aid Matter Uncertain Tax Position

Description of the matter:

As discussed in Note 5 of the financial statements, the European Commission ("EC") has announced its decision that Ireland granted state aid to Apple Inc. by providing tax opinions in 1991 and 2007 concerning the tax allocation of profits of the Irish branches of two subsidiaries of Apple Inc. The decision ordered Ireland to calculate and recover additional taxes from Apple Inc. for the period from June 2003 through December 2014. The adjusted amount indicated by the EC to be recovered is up to 12.9 billion, plus interest. Auditing management's evaluation of the uncertain tax position stemming from the effects of the EC decision is complex and highly judgmental due to the inherent uncertainty in predicting the ultimate resolution of the matter."