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

question 46

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:

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The collective activities undertaken by an organization to promote, inform, or engage with its audience across various channels.

Internet Channel

A digital pathway through which products or services are sold or information is disseminated online.

Personalized Offerings

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Convenience

The quality of being suitable or practical with minimal difficulty or effort; often an important factor in consumer decision-making.