A Common Form of Employee Compensation for Many Companies Involves

Multiple Choice

A common form of employee compensation for many companies involves the use of stock options. The auditor should determine all of the following except:

A) the types of incentive compensation plans used to compensate officers and employees
B) the ranking of officer compensation for the company within its industry, including stock options and all other types of executive compensation
C) how compensation expense is determined
D) how compensation expense is allocated to various accounting periods
E) the adequacy of disclosure related to incentive compensation plans