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