Apple 2005 Annual Report Download - page 113

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Item 14. Principal Accountant Fees and Services
The following table sets forth the fees paid to the Company’s independent registered public accounting firm, KPMG LLP, during fiscal years
2005 and 2004.
Audit and Non-Audit Fees
(1)
Audit fees relate to professional services rendered in connection with the audit of the Company’s annual financial statements and internal
control over financial reporting, quarterly review of financial statements included in the Company’s Forms 10-Q, and audit services
provided in connection with other statutory and regulatory filings.
(2)
Audit-related fees primarily relate to professional services for the audits of employee benefit plans.
(3)
Tax fees include $690,000 for professional services rendered in connection with tax compliance and preparation relating to the
Company’s expatriate program, tax audits and international tax compliance; and $233,000 for international tax consulting and planning
services. The Company does not engage KPMG to perform personal tax services for its executive officers.
Policy on Audit Committee Pre-Approval of Audit and Non-Audit Services Performed by the Independent Auditors
Prior to the enactment of the Sarbanes-Oxley Act of 2002 (the “ Act ”), the Company adopted an auditor independence policy that banned its
auditors from performing non-financial consulting services, such as information technology consulting and internal audit services. This auditor
policy also mandates that the audit and non-audit services and related budget be approved by the Audit Committee in advance, and that the
Audit Committee be provided with quarterly reporting on actual spending. In accordance with this policy, all services to be performed by
KPMG were pre-approved by the Audit Committee.
Subsequent to the enactment of the Act, the Audit Committee met with KPMG to further understand the provisions of that Act as it relates to
auditor independence. KPMG rotated the lead audit partner for fiscal year 2005 and will rotate other partners as appropriate in compliance with
the Act. The Audit Committee will continue to monitor the activities undertaken by KPMG to comply with the Act.
111
2005
2004
Audit Fees
$
6,948,800
(1)
$
3,402,300
Audit
-
Related Fees
46,700
(2)
57,000
Tax Fees
923,000
(3)
784,500
All Other Fees
—
—
Total
$
7,918,500
$
4,243,800