The Directors of a Listed Company Refuse to Disclose Directors

question 35

Multiple Choice

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.

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Definitions:

Subgoals

Smaller, achievable objectives set as steps toward reaching a larger goal, facilitating problem-solving and task completion.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

The representativeness heuristic is a cognitive bias where people judge the probability of an event or the likelihood of an object belonging to a category by how much it resembles a typical case.

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making, often used unconsciously.