OPINION Unqualified Opinion Qualified Opinion: (Clean Opinion): This opinion is issued when the auditor This is the best type of audit opinion a company concludes that the financial statements fairly can received. are presented, except for a specific area.
It indicates that the financial statements The qualification could be due to deviation present a true and fair view of the company’s from the applicable financial reporting financial position and are free from material framework or a limitation in the scope of misstatements. the audit.
It also means that the auditor believes that The auditor explains nature and reasons thefinancial statements comply with the for the qualification in the audit report. applicable financial reporting framework (e.g., GAAP, IFRS)
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Adverse Opinion: Disclaimer of Opinion:
An adverse opinion is issued when the auditor A disclaimer of opinion is issued when the auditor is unable to form an opinion on the determines that the financial statements are financial statements. materially misstated and do not accuratley reflect the company’s financial performance or This may occur due to significant limitations position. on the scope of the audit, such as the auditor not being provided with necessary information This opinion suggests significant issues with or facing restrictions imposed by the company. the financial statements that are pervasive and cannot be confined to specific area. The auditor will explain the reasons for the disclaimer in the audit report, stating that they An adverse opinion is a major warning for were unable to complete the audit stakeholders, signaling that the financial satisfactorily. statements are unreliable.
I THINK I COULD ADD SOME SERIOUS VALUE TO YOUR ACCOUNTS
