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    Stock Options and Internal Controls

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    Comment on the following statement: "Stock options set up an immeasurable climate for weak internal controls and fraud."

    © BrainMass Inc. brainmass.com October 10, 2019, 5:47 am ad1c9bdddf
    https://brainmass.com/business/options/stock-options-internal-controls-517502

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    When companies offer stock options, the internal environment must be closely monitored because it can literally deteriorate a good internal control environment. While stock options from companies do have many advantages including reduced turnover, retaining qualified talent, and remaining competitive in the industry with what competitors are offering as far as benefits are concerned, there are serious disadvantages. Stock options ...

    Solution Summary

    This solution discusses the following comment: Stock options set up an immeasurable climate for weak internal controls and fraud.

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