http://investor.apple.com/secfiling.cfm?filingid= XXXXXXXXXX&cik=320193 Consider and discuss the specific risks and nature of Apple Inc. 10-K (link above) form and create comprehensive work programs...

Audit Program Template
Q:
Page 1 of 4
Apple Inc.
Audit Work Program
The company records all Property, plant and equipment at cost. For computation of Depreciation straight-line method is used and
depreciation is spread over the estimated useful lives of the assets.
The useful life of assets so determined is:
1.For buildings is the lesser of 30 years or the remaining life of the underlying building;
2.For Buildings:- one to five years for machinery and equipment,
3. For leasehold assets and equipment’s:- Shorter of lease terms or ten years.
Eligible capital costs to develop and acquire assets developed for internal use are capitalized only when it is incu
ed after the
preliminary project stage. The same if also amortized in 3 to 5 years
The company has recorded $22471 and $ 20624 respectively for Property plant and equipment for the year 2015 and 2014.Of this
amount of accumulated depreciation includes $26786 and 18391 for the years 2015 and 2014 respectively.
1. First Objective – Assessment of Risk
a. Inherent Risk: - The Auditor must understand the clients business and environment related to
inherent risk which includes fraud risks and risks related to property, plant and equipment.
Following must be done:-
1. Assess the internal control prevalent.
2. Assess the risk of material misstatement and then move forward to apply tests of control. Also
evaluate whether tests of controls so designed are sufficient to assess the risk of material
misstatement or not.
3. The existence of property plant and equipment must be ensured. Any transfer or rights, sale deed
and purchase must be verified by title deeds, agreements and any other document depicting
ownership transfer.
4. Assets are not purchased a from related party specially at inflated prices
5. Risk of wrong disposal, write-off of assets as scrap and obsolescence must be checked.
6.
7. Cutoff transactions affecting property plant and equipment must be verified.
8. AS on the date of preparation of balance sheet, client must hold the right to the recorded
property plant and equipment.
9. Ensure that complete transactions are recorded and all capital expenditures relating to the
property, plant and equipment has been recognized including capital finance costs as in the case
of finance leases.
.
2. Second Objective Property , Plant & Equipment, Internal Control Procedures and Test
Controls
a. Occu
ence- Any purchase, sale or transfer of rights must have occu
ed during the period of
financial statements under consideration. This must be verified through sale or transfer deed.
The person responsible for maintaining the records must be allowed to assess the value of
property plant and equipment. There must be separation of duties.
. Completeness- All the transactions relating to property plant and equipment must be recorded
in full.
c. Accuracy- The value of assets must have been co
ectly recorded taking into account all the
additions, deletions and transfers. Deprecation on assets has been...