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A piecemeal opinion is a report that an external auditor issue regarding the financial statement opinion of specific line items. An auditor may give a piecemeal opinion when the about statement information is not complete. Generally accepted auditing principal (GAAP) no longer allows this type of opinion because it contradicts the overall opinion’s effect.
A Little More on What is a Piecemeal Opinion
When piecemeal opinions were still in use, they had extreme specifications so that they could be credible because many components of the financial statement of a company were interrelated. According to Carman G. Blough, the former Chief Accountant, there was a possibility of expressing a piecemeal opinion regarding the accuracy of some items listed on the balance sheet of a company.
However, expressing a piecemeal opinion on the balance sheet as a whole wouldn’t be possible because of the relationship it has with other financial statements like the income statement.
External auditors are usually independent contractors who focus on the organization’s financial statement fairness. They ensure that whatever opinion they give will accurately reflect the financial situation of that particular company. External auditors will openly tell if the financial statements of the firm in question do not have material misstatement as a result of fraud or error.