The directors of a listed company refuse to disclose directors' remuneration of $400 000 on the basis that it is not material.Net profit after tax is $25 million and net assets are $100 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 refusal to disclose directors' remuneration is a breach of financial reporting standards, which requires such disclosures. Although the amount is not material in relation to net profit or net assets, the lack of disclosure affects the transparency and completeness of the financial statements, warranting a qualified opinion.

The Directors of a Listed Company Refuse to Disclose Directors