Business Definition for: unqualified opinion
unqualified opinion
auditor's judgment that he or she has no reservation as to the fairness of presentation of a company's financial statements and their conformity with
Generally Accepted Accounting Principles (GAAP)
also termedclean opinion. In the auditor's opinion, the company has presented fairly its financial position, results of operations, and changes in cash flows. However, if there is inconsistency in application of GAAP, there should be disclosure in the auditor's report.
unqualified opinion
independent auditor's opinion that a company's financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles. The justification for the expression of the auditor's opinion rests on the conformity of his or her audit with generally accepted auditing standards and on his or her feelings. Materiality and audit risk underly the application of auditing standards.
See also
accountant's opinion
,
adverse opinion
,
qualified opinion
unqualified opinion
Related Terms:
statement signed by an independent public accountant describing the scope of the examination of an organization's books and records. Because financial reporting involves considerable discretion, the accountant's opinion is an important assurance to a lender or investor. Depending on the scope of an audit and the auditor's confidence in the veracity of the information, the opinion can be unqualified or, to some degree, qualified. Qualified opinions, though not necessarily negative, warrant investigation. Also called auditor's certificate.
term used when an auditor reports that the company's financial statements do not present fairly the financial position, results of operations, or changes in financial position or are not in conformity with gaap. The auditor must provide the reasons for the adverse opinion in the audit report. An adverse opinion is rare and usually results when the CPA has been unable to convince the client to amend the financial statements so that they reflect the auditor's estimate about the outcome of future events or so that they otherwise adhere to GAAP.
auditor's opinion accompanying financial statements that calls attention to limitations of the audit or exceptions the auditor takes to the statements. Typical reasons for qualified opinions: a pending lawsuit that, if lost, would materially affect the financial condition of the company; an indeterminable tax liability relating to an unusual transaction; inability to confirm a portion of the inventory because of inaccessible location.
statement signed by an independent public accountant describing the scope of the examination of an organization's books and records. Because financial reporting involves considerable discretion, the accountant's opinion is an important assurance to a lender or investor. Depending on the scope of an audit and the auditor's confidence in the veracity of the information, the opinion can be unqualified or, to some degree, qualified. Qualified opinions, though not necessarily negative, warrant investigation. Also called auditor's certificate.
term used when an auditor reports that the company's financial statements do not present fairly the financial position, results of operations, or changes in financial position or are not in conformity with gaap. The auditor must provide the reasons for the adverse opinion in the audit report. An adverse opinion is rare and usually results when the CPA has been unable to convince the client to amend the financial statements so that they reflect the auditor's estimate about the outcome of future events or so that they otherwise adhere to GAAP.
auditor's opinion accompanying financial statements that calls attention to limitations of the audit or exceptions the auditor takes to the statements. Typical reasons for qualified opinions: a pending lawsuit that, if lost, would materially affect the financial condition of the company; an indeterminable tax liability relating to an unusual transaction; inability to confirm a portion of the inventory because of inaccessible location.
Referring Terms:
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