I will be appalled if you use "appauled" in a sentence. Just replace the "u" in "appauled" by "l" and you will be correct. "Appauled" is a misspelling. "Appalled" is correct.
Appalled refers to when someone has been shocked or horrified by an unpleasant sight or happening.
"Joe was appalled at the sight of the accident scene."
Appauled is an inappropriate spelling of the word, appalled. Enunciation of the original word might be responsible for this error during writing.