AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 27DQP
a.
To determine
Locate annual proxy statement and summary of CEO compensation for 2017 and identify the total amount and component of the chairman and chief executive officer’s total compensation from DEF 14A Filing from SEC’s website.
b.
To determine
State one
c.
To determine
State one audit procedure the auditor would perform to test occurrence objective related to the awarding of the chairman and CEO’s stock awards and stock option/stock appreciation rights (SAR).
d.
To determine
Identify the auditor test for fair value estimation of the stock option /stock option rights.
e.
To determine
Explain the importance of balance related presentation audit related objective for stock based compensation.
f.
To determine
Locate CEO pay ratio section and identify the ratio of CEO pay to median employee for 2017 and summarize the methodology used to calculate ratio
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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.
a controller argues that when a company issues stock for less than current value, the value of preexinting stockholders shares is diluted. Is this allowed and right at employee compensation ?
Which of the following documents will contain information about the compensation for Directors of a public company:
The 10Q
The Proxy Statement
The Annual Report
The outside Auditors Report
Chapter 20 Solutions
AUDITING+ASSURANCE 12MONTH ACCESS CARD
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 - Prob. 26DQPCh. 20 - Prob. 27DQPCh. 20 - Prob. 28C
Knowledge Booster
Similar questions
- Please give answer to the following Questionarrow_forwardWhich 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 IVarrow_forwardYou are offered a job you know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant? While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder relative to any applicable statutes or laws?arrow_forward
- Suppose you were a member of Company X’s board of directors and chairpersonof the company’s compensation committee. What factors should your committeeconsider when setting the CEO’s compensation? Should the compensation consistof a dollar salary, stock options that depend on the firm’s performance, or a mixof the two? If “performance” is to be considered, how should it be measured?Think of both theoretical and practical (that is, measurement) considerations. Ifyou were also a vice president of Company X, might your actions be differentthan if you were the CEO of some other company?arrow_forwardJ-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project. The board asks whether the project is compliant with legally-required accounting principles, but asks no other questions about the project, such as how the project supports the company’s mission and strategy. Which of the following is true? A. The board is meeting legal requirements but not its duty of care to shareholders. B. The board is not legally required to meet any duty of care requirements. C. The board is fully meeting its duty of care to shareholders. D. The board is not meeting its duty of care to shareholders.arrow_forwardEvery annual report of a public company includes an extensive discussion and analysis provided by thecompany’s management. Specifically, which aspects of the company must this discussion address? Isn’tmanagement’s perspective too biased to be of use to investors and creditors?arrow_forward
- When employees have a conflict of interest between their personal compensation and provision of truthful financial statements to shareholders, the securities regulator, such as the Securities Exchange Commission, should shut down such financial companies. the external auditors should take the word of the employees and the management about the value of such securities. the accounting standards' supervisory board should be required to audit such financial companies. the board of directors should approve clear policy guidelines and monitor their enforcement to combat such conflicts. COarrow_forwardCompany A pays its managers a fixed cash salary. Company B adds ‘Short Term Incentives’ which involve extra cash payments linked to profits. Company C pays part of the compensation in company shares. Which Company’s compensation is most likely to mitigate conflicts of interest between managers and shareholders?arrow_forwardAssume you are the financial director of a public company which has been experiencing a decline in financial performance. At a board meeting it is being proposed that all directors and senior managers receive a substantial increase in pay and bonuses. One director has stated that the figures can be masked, legitimately, in the annual report and accounts. It has also been proposed not to increase the dividend to shareholders, stating that the money is needed for essential investment. The company does have assets which are in need of replacement. What do you think about these proposals? Do they suggest good, bad, or indifferent corporate governance?arrow_forward
- Richardson Company is contemplating the establishment of a share-based compensation plan to provide long-run incentives for its top management. However, members of the compensation committee of the board of directors have voiced some concerns about adopting these plans, based on news accounts related to a recent accounting standard in this area. They would like you to conduct some research on this recent standard so they can be better informed about the accounting for these plans. Instructions Access the IFRS authoritative literature at the IASB website. (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.) a. Identify the authoritative literature that addresses the accounting for share-based payment compensation plans. b. Briefly discuss the objectives for the accounting for share-based…arrow_forwardA company's board thinks it needs to reward top management for advancing the company's aims. The board decides on bonuses based on share price rises at the end of each year. Bonuses will be given in shares that managers can keep or sell. What are the ramifications of such a bonus scheme?arrow_forwardWhat is a good response to? A shareholder has a non-controlling interest in a company if the shareholder does not own enough equity in the company to shape decision-making at the firm (Hayes, 2024; “Non-controlling”, 2024). In order to determine the shareholder’s non-controlling interest balance in a company at the start of the period, the accountant first calculates the fair value of the non-controlling interest. Next, the employee calculates the change in the company’s retained earnings that is proportional to the non-controlling interest (Hoyle et al., 2024). The accountant adds this number to the fair value of the non-controlling interest. Then, the employee subtracts the excess fair value amortizations that are proportional to the non-controlling interest from the aforementioned amount (Hoyle et al., 2024). The result is the non-controlling interest balance at the start of the period. To calculate the non-controlling interest balance at the end of the period, the accountant adds…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage