The use of opinion units allows the auditor to
A) Provide different opinions on different components of the reporting entity.
B) Only allow one opinion for entire entity not its components.
C) Plan the audit better and increase the effectiveness of substantive procedures.
D) Eliminate the need for Test of Controls.

Question

Quizplus · Accepted Answer

The use of opinion units allows the auditor to provide different opinions on different components of the reporting entity. This means that the auditor can opine on each component separately, which helps to provide more accurate and relevant information to users of the financial statements. It also allows the auditor to focus their efforts on the areas that are most material to the financial statements and therefore increase the effectiveness of substantive procedures.

The Use of Opinion Units Allows the Auditor to