Apple 2007 Annual Report Download - page 123

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Item 14. Principal Accountant Fees and Services
The following table sets forth the fees accrued or paid to the Company's independent registered public accounting firm, KPMG LLP, during
fiscal years 2007 and 2006.
Audit and Non-Audit Fees
(1)
2007
2006
Audit Fees (1)
$
7,943,900
$
7,912,700
Audit
-
Related Fees (2)
432,000
28,000
Tax Fees (3)
600,400
820,500
All Other Fees
—
—
Total
$
8,976,300
$
8,761,200
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. Fiscal years 2007 and 2006 includes fees incurred in connection with
the Special Committee of the Board of Directors' investigation into stock option practices.
(2)
Audit
-
related fees comprise fees for professional services that are reasonably related to the performance of audit or review of the
Company's financial statements.
(3) The 2007 and 2006 tax fees include $581,200 and $728,600, respectively, 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 $19,200 and
$91,900, respectively, 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
independence 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 the Act as it relates to
auditor independence. KPMG previously rotated the lead audit partner in fiscal year 2005 in compliance with the Act. KPMG also rotated other
partners in 2007 and 2006, and will rotate additional partners as appropriate. The Audit Committee will continue to monitor the activities
undertaken by KPMG to comply with the Act.
119