An Unmodified Audit Opinion Rendered on a Government Unit's Basic

question 2

Multiple Choice

An unmodified audit opinion rendered on a government unit's basic financial statements means those statements:

• A) Have been certified as free from error.
• B) Did not require modifications by the auditor.
• C) Present the entity's financial position fairly in conformity with GAAP.
• D) All of these choices are correct.

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Definitions:

Obligation

A legal or moral duty to do or refrain from doing something.

Statute of Frauds

a legal principle that requires certain types of contracts to be written and signed by the party being charged with the obligation to be enforceable.

One-Year Provision

A legal principle that requires certain contracts, such as those that cannot be fulfilled within one year, to be in writing to be enforceable.

Contract Comes into Existence

The point at which an agreement between two or more parties is legally enforceable, usually triggered by an offer, acceptance, and adequate consideration.