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NEW QUESTION: 1
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. Trace the authorization for the transaction to a vote of the board of directors.
C. Verify the existence of option holders in the entity's payroll records or stock ledgers.
D. Determine that sufficient treasury stock is available to cover any new stock issued.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. In auditing the granting of stock options, the auditor would normally trace the
transactions to approval by the board of directors.
Choice "A" is incorrect. The Secretary of State would not be able to confirm the granting of stock options.
Choice "B" is incorrect. Verifying the existence of option holders provides little evidence to support
management's financial statement assertions.
Choice "C" is incorrect. Converted stock options may be distributed from authorized common shares rather
than treasury stock.
NEW QUESTION: 2
I really dug the character of Brutus.
A. thought of
B. thought about
C. gazed at
D. dug
E. admired
Answer: E
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
A. Option A
B. Option B
Answer: B