Apple’s Backdating Scandal: Backdating entails dating an employee stock option grant prior to the date the company actually granted the stock options. It was an action undertaken by some companies in an attempt to under-report compensation expense. In 2006, Apple was accused by the SEC of backdating, and Apple later settled a shareholder lawsuit for $14 million and several company executives paid fines without admitting guilt.
To audit stock-based compensation, auditors must ensure that they have complete information regarding the grants, as well as a level of knowledge and expertise suitable for this complex area of accounting.

Required:
List some of the important issues surrounding the accounting and disclosure for share-based compensation?