A Common Form of Employee Compensation for Many Companies Involves

question 61

Multiple Choice

A common form of employee compensation for many companies involves the use of stock options. The auditor should determine all of the following except:

• A) the types of incentive compensation plans used to compensate officers and employees
• B) the ranking of officer compensation for the company within its industry, including stock options and all other types of executive compensation
• C) how compensation expense is determined
• D) how compensation expense is allocated to various accounting periods
• E) the adequacy of disclosure related to incentive compensation plans

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Definitions:

Disinhibition

One of five trait domains associated with personality disorders in the DSM-5, it is characterized by a lack of self-control and impulsive behavior.

Friend Ratings

Assessments or evaluations of an individual's qualities or performance, often in terms of personality or behavior, made by their friends.

Self-ratings

A method of assessment where individuals evaluate their own performance, traits, or states.

Longevity

The length of time that a person or organism lives; often used in discussions about factors that contribute to a long life.