Final answer:
The Explanatory paragraph is not required in every auditor's report for state and local government units, unlike the essential Introductory, Opinion, and Scope paragraphs.
Step-by-step explanation:
In audits of state and local government units, the paragraph that may not be required in the auditor's report for every audit is the Explanatory paragraph. The Introductory paragraph, Opinion paragraph, and Scope paragraph are essential components of an auditor's report. However, the Explanatory paragraph is not mandatory and is included only when the auditor needs to provide further clarification or explain certain aspects of the audit findings that are not otherwise evident within the standard report structure.
Based on the information provided, in audits of state and local government units, the paragraph that may not be required in every audit is the Explanatory paragraph. The other three paragraphs - the Introductory paragraph, Opinion paragraph, and Scope paragraph - are typically included in the auditor's report for every audit.