Review and discuss the Form 10-K for the Apple company.

Review and discuss the Form 10-K for the Apple company.Section 1, Initial Risk Assessment.Hint: The business and risk information is usually found in the first part of the Form 10-K. However, for the risks, do not simply restate what is in the Form 10-K. Think like a senior manager at a CPA firm – what accounts (Cash, A/R, Revenue, Inventory, etc.) might be the most potentially risky and why? For example, an airline might not have the same inventory considerations found with a retail outlet like Wal-Mart.In 700 wordsDescribe the business briefly.Assess any risks you may encounter in auditing this company.General Audit Concerns· The requisite background you and your team will need to adequately audit this company.· Time it will take to adequately audit this client.General Business Concerns. · Has the company you’re auditing recently increased or decreased their operations due to mergers or sales of parts of the business? · Are they a conglomerate with lots of disparate kinds of goods and services, or are they a simple straight-forward type of business operating in a relatively small location?· Are operating supplies (such as jet fuel or specialty plastics) in short supply or subject to wild pricing swings on the open market? · What about overseas operations – are they operating in dangerous parts of the world?· How robust or intense is the competition in this particular industry?· Has their top management recently been replaced and if so, why?· Is seasonality a factor for this company? How does that affect revenue and other operations?Describe the following issues:Ethics and Legal Issues· The ethics and sophistication of top management and cultures where the company operates. · Have there been significant auditing or accounting issues raised in the recent past? · Did they have disputes with their previous audit firm?· Is this company or industry particularly susceptible to lawsuits or other legal proceedings? Evaluate the regulatory and compliance requirements of this company:Regulatory and Compliance Concerns· The compliance requirements of this company.· Is it subject to a high-level of governmental regulation? · Are employees unionized? Are they generally compliant with Sarbanes-Oxley and other regulatory rules?