Unqualified opinion, also known as a clean opinion , without any restrictions and
free from misstatement, that the financial statements of the company represented
clearly, showing the financial position and performance of the company
The unqualified mean provides all these points:
– Apply accounting
– The financial
statement prepared according to GAAP
– Complete disclosure in
– There are no
violations in essential of company system or law.
– The review process
complete under standard without any fraud.
: auditor qualify the finincal statement is fairly
????? qualified opinion, the report conform with GAAP
but except in few points .
qualified opinion happens when:
there an exit from GAAP but not very significant
financial statement prepared in way that doesn’t enough for disclosure standard.
a restriction on the auditor during audit process
is 2 type:
Deviations from GAAP: occurs when one or two items not conform with a
GAAP, but the rest is fairly.
incorrect depreciation expense.
of scope: occurs when the auditor doesn’t qualify one or two items, but
the rest it is conform with a GAAP.
the auditor not able to test all the goods of company inventory’s. and all the
financial statement is conforming with GAAP so the auditor can except the
inventory which not audited.
adverse opinion, the financial statement as a whole misrepresented, and the
auditor determines as a misstated. Not apply accounting principles. It is
opposite the qualified and unqualified because the initial information
inaccurate. Usually adverse it’s not good for a company and might be reduce
fraud or error in financial statement. Problem in cash flow and financial
position and conflict with GAAP the auditor opinion write as an adverse with
qualify principle of accounting and how influence in cash flow and finical
disclaimer, issued when the auditor not independent or conflict of interest either
a company don’t give them enough support to gather information.
where the auditor is unable to attend the inventory count and unable to request
receivables confirmations, and there is no other realistic means of gathering
evidence on these two areas. If these two areas form a significant element of
the total assets value, a disclaimer may be appropriate.