The table below is an excerpt from Apple Inc.’s Statement of Shareholders’ Equity for its fiscal year ended September 30, 2017:
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in millions, except number of shares, which are reflected in thousands)
Common Stock and
Additional Paid-In
Capital Retained
Earnings
Accumulated
Other
Comprehensive
Income/(Loss)
Total
Shareholders’
EquityShares Amount
Balance as of September 24, 2016 5,336,166 $31,251 $96,364 $634 $128,249
Net income 48,351 48,351
Other comprehensive income/(loss) (784) (784)
Dividends and dividend equivalents
declared
(12,803) (12,803)
Repurchase of common stock (246,496) (33,001) (33,001)
Share-based compensation 4,909 4,909
Common stock issued, net of shares
held for employee taxes
36,531 (913) (581) (1,494)
Tax benefit from equity awards,
including transfer price adjustments
620 620
Balance as of September 30, 2017 5,126,201 $35,867 $98,330 $(150) $134,047
a. How would the auditor verify the balances as of September 24, 2016?
b. What would the auditor do to evaluate the amount shown as Net Income?
c. What sources of evidence might the auditor use to satisfy the occurrence objective for each of the following?
(1) Repurchase of common stock
(2) Share-based compensation
(3) Common stock issued
How should the amounts shown as of September 30, 2017, relate to the amounts shown in Apple’s balance sheet as of the same date?
