Auditing and Assurance Services, Student Value Edition (16th Edition)
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
Question
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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 audit procedure that auditor will perform to test the chairman and CEO’s salary and identify the audit objective that is satisfied with this audit procedure.

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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