How Would an Auditor Generally Measure the Value of a Stock

question 28

Multiple Choice

How would an auditor generally measure the value of a stock option expense?

• A)Fair value.
• B)Appraised value.
• C)By computing a weighted average value of all classes of stock authorized.
• D)All of these methods can be used.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization, influencing motivation.

Self-actualization

The achievement or actualization of an individual's skills and possibilities, seen as an inherent motivation or necessity in all people.

Underreward Inequity

A situation where an individual perceives they are receiving less compensation or recognition for their efforts compared to others.

Outcome/Input Ratio

A concept used in equity theory referring to the ratio of contributions (inputs) an individual gives to a job and what they receive (outcomes) in return.