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 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 present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity in conformity with generally accepted accounting principles (GAAP). Therefore, option C is the correct answer. Option A is incorrect because an unqualified opinion means the financial statements do not contain any departures from GAAP that are significant enough to require a qualified or adverse opinion. Option B is incorrect because the audit opinion is based on the qualifications of the auditor, not the financial statements. Option D is incorrect because an unqualified opinion does not certify the financial statements as free from error.

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