Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
Question
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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 audit procedure the audit perform to test the chairman and CEO’s salary and audit objective behind the procedure

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

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