Apple Changes Auditor Policy

Apple Computer

The Cupertino-based computer maker said it will continue to use its auditors for financial consulting in areas such as audits of statutory filings of foreign subsidiaries, 401k audits, Securities and Exchange Commission registrations and tax compliance and planning.

KPMG serves as Apple's independent auditor, as listed in the computer company's fiscal 2001 10-K filing with the SEC. The Big Five accounting firm spun off its KPMG Consulting arm as a public company last February.

Through the Audit and Finance Committee of its board, Apple already reviews nonaudit services that auditors are engaged to perform. The company said the committee will continue that practice to ensure auditor independence.

"Our board's audit committee has always been vigilant in these matters, but why not go a step further and make it crystal clear to our shareholders," Apple CEO Steve Jobs said in a statement.

Auditor independence has emerged as a hot national issue in recent weeks amid the financial meltdown of Enron. The Houston-based company's bankruptcy, the biggest in U.S. history, raised conflict-of-interest questions concerning the alleged role of Big Five firm Arthur Andersen, which provided accounting/audit and consulting services to the energy giant.