Cassidy Ltd, a listed company, refuses to separately disclose directors' fees of $2.5 million on the basis that they believe they are quantitatively immaterial.Profit for the last year was $980 million.The auditor should issue a(n):
A)adverse opinion.
B)qualified opinion.
C)unmodified opinion with an Emphasis of Matter paragraph.
D)unmodified opinion.

Question

Quizplus · Accepted Answer

Given the context, the refusal to disclose directors' fees, even though they might seem small in comparison to the overall profit, could still be considered a misstatement that is material by nature, if not by size. This could affect the financial statements' ability to present a true and fair view, leading to a qualified opinion by the auditor.

Cassidy Ltd, a Listed Company, Refuses to Separately Disclose Directors