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In performing substantive tests regarding the granting of stock options to senior management of an issuer, an auditor most likely would
A. Confirm with those members of management as to whether they are actually option holders.
B. Verify the existence of option holders in the issuer’s payroll and human resources records.
C. Trace the authorization for the options granted to the board of directors’ approval.
D. Review the public records of the SEC to determine whether the options were properly reported.
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