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

Question

Quizplus · Accepted Answer

An opinion unit is a level of reporting of a government that requires a separate materiality level, meaning that the financial information of that unit is material enough to warrant a separate opinion. It is used in auditing governmental financial statements.

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