Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 20, Problem 28DQP
a.
To determine
Find out the components of the chairman and chief executive officer’s total compensation for 2014.
b.
To determine
State one
c.
To determine
Provide at least one audit procedure the auditor performs to test the occurrence objective related to the awarding of the chairman and CEO’s stock awards and stock option/ stock appreciation rights (SAR).
d.
To determine
Explain the manner in which the auditor tests the fair value of the stock option/ stock appreciation rights (SAR).
e.
To determine
Explain the reason for which the presentation and disclosure-related audit objectives are important for stock-based compensation.
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Students have asked these similar questions
Suppose you were a member of Company A’s board of directors and chairperson of the company’s compensation committee. What factors should your committee consider when setting the CEO’s compensation? Should the compensation consist of a dollar salary, stock options that depend on the firm’s performance, or a mix of the two? If “performance” is to be considered, how should it be measured? Think of both theoretical and practical (that is, measurement) considerations. If you were also a vice president of Company A, might your actions be different than if you were the CEO of some other company?
Rules recently established by the Securities and Exchange Commission include a "say on pay rule that requires:
Multiple Choice
Audit committee review of executive compensation.
Nonbinding shareholder votes on executive pay.
Compensation committees as a part of corporate boards.
Detailed disclosures of executive compensation.
Shareholder votes on dividends declared.
Which of the following statements are correct regarding Sarbanes-
Oxley (SOX) and Dodd-Frank (DF)?
I. DF requires that public firms offer an advisory vote to
shareholders on top executive compensation.
II. SOX imposes criminal penalties on the CEO and CFO for fraud
or for retaliation on whistle blowers.
III. The compliance costs for SOX can be substantial and have
encouraged some firms to "go dark."
IV. DF requires companies to disclose whether directors and
officers are permitted to hold put options which protect their
ownership position in the firm.
O I and II only
O I and III only
O II and III only
O I, II, and III only
O I, II, III, and IV
Chapter 20 Solutions
Auditing and Assurance Services, Student Value Edition (16th Edition)
Ch. 20 - Prob. 1RQCh. 20 - Prob. 2RQCh. 20 - Distinguish among a payroll master file, a W-2...Ch. 20 - Prob. 4RQCh. 20 - Prob. 5RQCh. 20 - Prob. 6RQCh. 20 - Prob. 7RQCh. 20 - Prob. 8RQCh. 20 - Prob. 9RQCh. 20 - Prob. 10RQ
Ch. 20 - Prob. 11RQCh. 20 - Prob. 12RQCh. 20 - Prob. 13RQCh. 20 - Prob. 14RQCh. 20 - Prob. 15RQCh. 20 - Prob. 16.1MCQCh. 20 - Prob. 16.2MCQCh. 20 - Prob. 16.3MCQCh. 20 - Prob. 17.1MCQCh. 20 - Prob. 17.2MCQCh. 20 - Prob. 17.3MCQCh. 20 - Prob. 18.1MCQCh. 20 - Prob. 18.2MCQCh. 20 - Prob. 18.3MCQCh. 20 - Prob. 19DQPCh. 20 - Prob. 20DQPCh. 20 - Prob. 21DQPCh. 20 - Prob. 22DQPCh. 20 - Prob. 23DQPCh. 20 - Prob. 24DQPCh. 20 - Prob. 25DQPCh. 20 - The following are various asset misappropriations...Ch. 20 - Archer Uniforms, Inc., is a distributor of...Ch. 20 - Prob. 28DQPCh. 20 - Prob. 29C
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