The company and its independent auditors are reviewing the findings of the independent investigation.
Management continues to believe, and the audit committee agrees, that Apple will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.
They are completely out of character for Apple," said Steve Jobs, Apple's CEO.
A 1982 amendment to the tax code created an incentive for executives and their employers to work together to break the law.
The amendment labeled executive compensation in excess of $1 million as unreasonable and thus not eligible to be taken as a deduction on the firm's taxes.
When senior executives realized that they could look backward for the date during which their firm's stock was at its lowest trading price and then pretend that was the date they were issued the stock grants, a scandal was born.
By faking the issue date, they could guarantee themselves in-the-money options and instant profits.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh.
Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and i Life and professional applications.
But their weightiest charges of securities fraud were thrown out.
Ironically, Martha Stewart's case surfaced in the early days of disclosures about options backdating, when an anonymous lawyer was quoted by Business Week as saying Brocade Communications Systems Inc.
Take the beloved and equally reviled Martha Stewart.