On what basis does the independent auditor express an opinion in the context of basic fund financial statements?

The independent auditor expresses an opinion on the financial statements based on individual major funds. This means the auditor thoroughly examines the financial information of significant funding sources within an organization, ensuring accuracy and compliance with relevant accounting standards. Major funds are determined based on specific criteria set forth by financial reporting guidelines, primarily focusing on their size and importance to the overall financial statements.

Assessing individual major funds allows the auditor to provide a more precise opinion regarding the financial health and compliance of each major fund, ensuring that stakeholders receive an accurate representation of financial performance and position. This focus is crucial for users of the financial statements who rely on detailed information about specific segments of the organization's financial operations.

While fund types and fund categories are relevant aspects of financial reporting, the auditor's opinion is specifically tied to major funds, making that the most appropriate basis for expressing an opinion in the context of basic fund financial statements.