Apple 2011 Annual Report Download - page 80

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None.
Evaluation of Disclosure Controls and Procedures
Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’
s principal executive
officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-
15(e) and
15d-
15(e) under the Exchange Act were effective as of September 24, 2011 to provide reasonable assurance that information required to be
disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission rules and forms and (ii) accumulated and communicated to the
Company’
s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions
regarding required disclosure.
Inherent Limitations Over Internal Controls
The Company’
s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with GAAP. The Company’
s internal control over
financial reporting includes those policies and procedures that:
Management, including the Company’s Chief Executive Officer and Chief Financial Officer, does not expect that the Company’
s internal
controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable,
not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there
are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been
detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become
inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management’s Annual Report on Internal Control Over Financial Reporting
The Company’
s management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in
Rule 13a-15(f) under the Exchange Act. Management conducted an evaluation of the effectiveness of the Company’
s internal control over
financial reporting based on the criteria set forth in Internal Control –
Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (“COSO”). Based on the Company’
s assessment, management has concluded that its internal
control over financial reporting was effective as of September 24, 2011 to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements in accordance with U.S. generally accepted accounting principles. The Company’
s
independent registered public accounting firm, Ernst & Young LLP, has issued an audit report on the Company’
s internal control over financial
reporting, which appears in Item 15(a) of this Annual Report on Form 10-K.
78
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A.
Controls and Procedures
(i)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
Company
’
s assets;
(ii)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with GAAP, and that the Company’
s receipts and expenditures are being made only in accordance with authorizations of the
Company
’
s management and directors; and
(iii)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
Company
’
s assets that could have a material effect on the financial statements.