Which of the Following Is Not Considered an Opinion Unit

question 58

Multiple Choice

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) Investment trust fund financial statements.
• C) Each major governmental fund.
• D) Business-type activities.

---

Definitions:

Loss Aversion

A principle in behavioral economics suggesting that individuals are more sensitive to losses than to equivalent gains, leading to risk-averse decision-making.

Schemas

Mental structures that organize our knowledge and assumptions about something and are used for interpreting and processing information.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action.

Heuristics

Simple, efficient rules, either mental or computational, that help in making decisions, forming judgments, or solving problems.