The term "opinion unit" refers to which of the following:
A) One of the four statements required in the second paragraph of an Unmodified audit opinion
B) A division of a CPA firm
C) A state or local government together with its component units
D) A level of reporting of a government that requires a separate materiality level

Question

Quizplus · Accepted Answer

In any audit engagement, the auditor must determine a level of materiality. This determination is then used to plan, perform, and evaluate the results of audit procedures. Because of the various levels of reporting by governments government-wide, fund-type and individual fund), separate materiality evaluations are needed for the different levels of reporting.

The Term "Opinion Unit" Refers to Which of the Following