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Auditing and Assurance Services 1st Edition by Iris Stuart
Edition 1ISBN: 978-0073404004Auditing and Assurance Services 1st Edition by Iris Stuart
Edition 1ISBN: 978-0073404004 Exercise 18
UnitedHealth
Consider the case of backdated stock options as reported in the chapter for UnitedHealth.
a. What happens to the financial statements when options are backdated and the company fails to record compensation expense Do outsiders receive information that is materially misstated
b. Describe two management assertions violated when a company fails to record compensation expense related to backdated stock options.
c. Describe a substantive audit procedure that an auditor could use to determine whether financial statements are misstated through backdating of stock options.
Consider the case of backdated stock options as reported in the chapter for UnitedHealth.
a. What happens to the financial statements when options are backdated and the company fails to record compensation expense Do outsiders receive information that is materially misstated
b. Describe two management assertions violated when a company fails to record compensation expense related to backdated stock options.
c. Describe a substantive audit procedure that an auditor could use to determine whether financial statements are misstated through backdating of stock options.
Explanation
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Expenses:
The term expenses represent a...
Auditing and Assurance Services 1st Edition by Iris Stuart
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