Unqualified Opinion – Definition

Cite this article as:"Unqualified Opinion – Definition," in The Business Professor, updated February 22, 2020, last accessed June 6, 2020, https://thebusinessprofessor.com/lesson/unqualified-opinion-definition/.

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Unqualified Opinion Definition

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 auditor’s opinion a business can have, this is also the most common type of auditor’s report. Auditors examine the internal and external practices of a company before giving this report.

A Little More on What is an Unqualified Opinion

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.

References for “Unqualified Opinion

https://www.investopedia.com/terms/u/unqualified-opinion.asp

https://smallbusiness.chron.com › Accounting & Bookkeeping › Audit Reports

https://investinganswers.com/dictionary/u/unqualified-opinion

Academic research for “Unqualified Opinion

Going concern uncertainties: disclaimer of opinion versus unqualified opinion with modified wording, Lasalle, R. E., Anandarajan, A., & Miller, A. F. (1996). Going concern uncertainties: disclaimer of opinion versus unqualified opinion with modified wording. Auditing, 15(2), 29.

[PDF] Factors affecting quality of local government financial statements to get unqualified opinion (WTP) of audit board of the Republic of Indonesia (BPK), Suwanda, D. (2015). Factors affecting quality of local government financial statements to get unqualified opinion (WTP) of audit board of the Republic of Indonesia (BPK). Research Journal of Finance and Accounting, 6(4), 139-157.

Embracing the unqualified opinion, Kirshenbaum, S. (2017). Embracing the unqualified opinion

Analysis of Giving Opinion of the Audit Board of the Republic of Indonesia (BPK) on Unqualified Opinion (WTP), Padliansyah, R. (2017). Analysis of Giving Opinion of the Audit Board of the Republic of Indonesia (BPK) on Unqualified Opinion (WTP). Journal of Finance and Accounting, 5(6), 206.

Faktor-faktor yang Mempengaruhi Penerimaan Unqualified Opinion with Modified Paragraph Going Concern, Winata, Y., & MARLINAH, A. (2015). Faktor-faktor yang Mempengaruhi Penerimaan Unqualified Opinion with Modified Paragraph Going Concern. Media Bisnis, 7(1), 23-29.

Can you give an unqualified opinion on a proprietorship?, Flack, W. R. (1954). Can you give an unqualified opinion on a proprietorship?. Journal of Accountancy (pre-1986), 97(000005), 603.

Can unqualified opinion be given without confirmation of receivables, inventories?, Newman, B. (1951). Can unqualified opinion be given without confirmation of receivables, inventories?. Journal of Accountancy (pre-1986), 91(000005), 753.

UNQUALIFIED OPINION AND LEVEL OF CORRUPTION: THE TRIANGULATION APPROACH, Tehupuring, R. (2018). UNQUALIFIED OPINION AND LEVEL OF CORRUPTION: THE TRIANGULATION APPROACH. Jurnal Tata Kelola & Akuntabilitas Keuangan Negara, 4(2), 187-206.

Meaning And Interpretation of Unqualified Opinion of External Auditors: Perceptions of External Auditors and Users of Audited Financial Statements in Nigeria, Nwobu, O. (2015). Meaning And Interpretation of Unqualified Opinion of External Auditors: Perceptions of External Auditors and Users of Audited Financial Statements in Nigeria. The Journal of Accounting and Management, (3), 5-13.

[PDF] Relationship Between Auditor Switching and the Inclination of Audit Opinion Report Toward Unqualified Mode in the Companies Listed in Tehran Stock …, Hematfar, M. Relationship Between Auditor Switching and the Inclination of Audit Opinion Report Toward Unqualified Mode in the Companies Listed in Tehran Stock Exchange Market.

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