Which of the following is not considered an opinion unit requiring a materiality determination associated with a financial statement audit of a state or local government?
A) Aggregate discretely presented component units.
B) Management's discussion and analysis (MD&A).
C) Each major governmental fund.
D) Business-type activities.

Question

Quizplus · Accepted Answer

MD&A is not considered an opinion unit requiring a materiality determination associated with a financial statement audit of a state or local government. Instead, it is considered a required supplementary information (RSI) element. A materiality determination is required for aggregate discretely presented component units, each major governmental fund, and business-type activities.

Which of the Following Is Not Considered an Opinion Unit