Auditors Told To Look Out For Backdating

Law360, New York (July 31, 2006, 12:00 AM EDT) -- An accounting oversight board established by the Sarbanes-Oxley Act has issued guidelines for auditors on dealing with the manipulation of stock option grants, in the wake of SEC investigations, shareholder lawsuits, corporate restatements and even criminal charges stemming from options backdating.

The guidelines issued by the Public Company Accounting Oversight Board (PCAOB) came in the form of the board’s first “Audit Practice Alert.”

The alert doesn’t introduce new policies or laws, but rather is meant to help auditors navigate the complicated practice that accounting for option...
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