PCAOB Chairman testifies on stock options

  • PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

07 Sep 2006

Mark W.

Olson, Chairman of the US Public Company Accounting Oversight Board, testified before the US Senate Committee on Banking, Housing and Urban Affairs about issues related to companies' stock option granting practices and related accounting and auditing matters. Key points in his testimony:
  • Stock option granting practices have raised concerns about companies' accounting for and disclosure of compensation costs.
  • Changes in regulatory requirements appear to have reduced the incidence of suspiciously-timed option grants.
  • The PCAOB has alerted auditors to use judgment in considering issues relating to stock option granting practices in their audits.
(PDF 89k).

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