In Performing Tests Concerning the Granting of Stock Options, an Auditor

question 18

Multiple Choice

In performing tests concerning the granting of stock options, an auditor should

• A) Confirm the transaction with the Secretary of State in the state of incorporation.
• B) Verify the existence of option holders in the entity's payroll records or stock ledgers.
• C) Determine that sufficient treasury stock is available to cover any new stock issued.
• D) Trace the authorization for the transaction to a vote of the board of directors.

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Definitions:

Social Exclusion

A process in which individuals or groups are systematically blocked from rights, opportunities, and resources that are normally available to members of a society and are key to social integration.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Social Anxiety Disorder

A chronic mental health condition in which social interactions cause irrational anxiety, fear, embarrassment, or concern about being judged or viewed negatively by others.