Audit opinion
Also called: qualified opinion, adverse opinion, disclaimer of opinion, unmodified opinion, clean audit report
The auditor's conclusion on whether the financial statements give a true and fair view: unmodified, qualified, adverse or a disclaimer.
An unmodified (clean) opinion is the normal outcome. A qualified opinion says the statements are fair except for a specific material matter. An adverse opinion says misstatements are material and pervasive. A disclaimer means the auditor could not obtain enough evidence to form an opinion. The last three are serious warnings.
Example
An "except for" paragraph about unverified receivables signals a qualified opinion.
Learn more in these lessons
- The auditor's reportWhat does an auditor's report tell investors?
- Financial red flagsWhat warning signs in a company's accounts should make you look harder?
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