No, it's not. And a negative finding by the SEC could send a shockwave through the entire high tech sector, as well as the entire stock market in general. Any company that followed the previously believed to be OK practice of granting options in this manner, will be sent scrambling to prevent a share devaluation across the board.
As a recall, this all started when Apple performed its own volantary audit. They are trying to get the situation resolved as quickly as possible.
Just wait till the SEC get to work on MicroSoft and its Magic Accounting (TM) practices. Now there is some job security from a whole bunch of SEC employees The Feds got Capone on tax evasion in the end. Will the SEC take down Billy-G?