AFL-CIO Asks Auditors To Prevent Options Backdating

Law360, New York (August 27, 2007, 12:00 AM EDT) -- The AFL-CIO has asked the world's biggest accounting firms to step up their scrutiny of corporations to help prevent the future manipulation of stock option grants.

In letters to the CEOs of PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young and KPMG, the AFL-CIO opined that auditors should exercise “professional skepticism” in their review of stock option grants and “assess the risk of misstatements” resulting from mistakes.

Among other things, the AFL-CIO recommended that independent auditors obtain broader access to senior management, gain a better understating of...
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