The Usual Audit Test for a Public Company's Officer Compensation

question 61

Multiple Choice

The usual audit test for a public company's officer compensation is to obtain the authorized salary of each officer from the minutes of the board of directors and compare it with

---

Definitions:

EDGAR

The Electronic Data Gathering, Analysis, and Retrieval system used by the United States Securities and Exchange Commission (SEC) for the submission of corporate filings.

FINRA

The Financial Industry Regulatory Authority, a non-governmental organization that regulates member brokerage firms and exchange markets in the United States.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities markets and protecting investors.

Retains

The portion of earnings that a company decides to keep or retain rather than distribute to shareholders in the form of dividends.