The directors of a listed company refuse to disclose directors' remuneration of $100 000 on the basis that it is not material. Net profit after tax is $20 million and net assets are $50 million. The appropriate auditor's report is:
A) unmodified with an Emphasis of Matter paragraph.
B) unmodified opinion.
C) a qualified opinion.
D) a disclaimer of opinion.

Question

Quizplus · Accepted Answer

The directors' remuneration is required to be disclosed by law or regulation, regardless of materiality. The omission of this disclosure results in a qualified opinion due to non-compliance with disclosure requirements.

The Directors of a Listed Company Refuse to Disclose Directors