An unqualified audit opinion rendered on a governmental unit's general purpose external financial statements means those statements
A) Contain departures from GAAP that may make them misleading.
B) Have been audited by an auditor with limited qualifications.
C) Present the entity's financial position fairly in conformity with GAAP.
D) Have been certified as free from error.

Question

Quizplus · Accepted Answer

An unqualified audit opinion means that the financial statements are presented fairly in accordance with GAAP. It does not mean that they are certified as completely error-free but provides reasonable assurance that they are free from material misstatements. A departure from GAAP would result in a qualified or adverse opinion. The auditor's qualifications are not relevant in this context.

An Unqualified Audit Opinion Rendered on a Governmental Unit's General