Options grants backdating probe takes a new turn

The unrolling scandal involving backdating--or spring-loading--of options granted to executives has veered, somewhat predictably, towards the auditors. Apparently, the SEC and others are taking a look at the Big Four and what they knew about a  practice that has put about 30 companies under investigation. This is not necessarily a new tack. Recall that in the case of software maker Peregrine, the agency alleged that its auditor, Arthur Andersen, knew about the practice. Overall, this is turning into a huge compliance issue for many firms. This is bad news for the auditors of course. Now is the time for caution when it comes to grants.

> Here's an article.
> The SEC may require disclosure of options grant backdating. Article
> Here's an update on the unfolding drama.