Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Accounting, Taxation, and Reporting
  • Managerial & Financial Accounting & Reporting

Unqualified Opinion - Explained

What is an Unqualified Opinion?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is an Unqualified Opinion?How is an Unqualified Opinion Used?Unqualified Opinion vs. Other OpinionsAcademic Research for Unqualified Opinion

What is an Unqualified Opinion?

An unqualified opinion is otherwise known as an unqualified report or a clean report. It is the judgment of an independent auditor about a company which states that the financial records and statements are fairly and accurately presented without any shortcomings. This opinion also shows that a business is in compliance with the generally accepted accounting principles (GAAP). An unqualified opinion or report is the best auditors opinion a business can have, this is also the most common type of auditors report. Auditors examine the internal and external practices of a company before giving this report.

Back to: Accounting & Taxation

How is an Unqualified Opinion Used?

If Company ABC hires an independent auditor to assess the financial records and statements of the firm, internal reports and external practices, if after the assessment Company ABC has not misrepresented any of its financial statements and complied with the standards of GAAP, an unqualified report is given by the auditor to reflect this.

Unqualified Opinion vs. Other Opinions

There are different kinds of opinion an auditor can give once an audit process is complete, these include qualified opinion, unqualified opinion, a disclaimer of opinion and adverse opinion. If an auditor gives a qualified opinion, it means that there is a slight issue with the financial reports and statements of a company or whether the accounting policies of the company are not totally compliant with the standards of GAAP. The issue does not necessarily mean that the financial statements of a firm are misrepresented or whether the firm is in chaos, it only shows that the company did not provide sufficient information needed. An unqualified opinion, on the other hand, means there is a fair and appropriate presentation of financial statements by a firm.

unqualified opinion

Was this article helpful?

Yes
No

Related Articles

  • Controller - Explained
  • Principles Based Accounting Standards - Explained
  • Gross Margin - Explained
  • Accounting Cycle - Explained



©2011-2021. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand