How would an auditor generally measure the value of a stock option expense?
A)Fair value.
B)Appraised value.
C)By computing a weighted average value of all classes of stock authorized.
D)All of these methods can be used.

Question

Quizplus · Accepted Answer

An auditor would generally measure the value of a stock option expense based on its fair value, which reflects the price at which an asset can be bought or sold in a market transaction. Appraised value and computation of weighted average value of all classes of authorized stock are not commonly used methods for measuring the value of a stock option expense.

How Would an Auditor Generally Measure the Value of a Stock