qualified opinion

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Qualified opinion

An auditor's opinion expressing certain limitations of an audit.

Qualified Opinion

An auditor's statement that he/she is unable to render a full opinion about a company's finances, or a portion thereof, because the company's accounting does not meet the Generally Accepted Accounting Principles or because the information was for some reason incomplete. In other words, a qualified opinion states that the company's accounting is so sloppy that the auditor cannot render an opinion. This is placed on the front page of an audit. See also: Except for opinion.

qualified opinion

The opinion of a Certified Public Accountant that a firm's financial statements deviate in some respect from a clean opinion according to generally accepted accounting principles. Compare clean opinion.
References in periodicals archive ?
They said: "A qualified audit report does not reflect the financial health of the business, and it does not mean that the financial statements are not transparent.
Our results show that the likelihood of receiving a qualified audit report decreases with tenure.
The main reason for 41% of the audit opinions included in this study receiving a qualified audit report was due to the councils' exposure to the impacts from the collapse of the US sub prime mortgage market.
Our findings show that even in a country of low audit litigation risk, where auditors are hardly ever sued for misconduct and negligence, they are not less likely to give a qualified audit report when providing audit and non-audit services.
SAS 34 required a qualified audit report if there was uncertainty regarding the recoverability of assets and the classification of liabilities.
59 audit reports have consistently found that only about 40 to 45% of bankrupt companies received a "subject to" qualified audit report on their financial statements for the year immediately preceding bankruptcy.
Although the City received a qualified audit report for the 2010/11 financial year, it has since received favourable credit ratings.
Over the past financial years, DCS has been receiving qualified audit reports, from AGSA, on issues relating to non-compliance to legislative requirements, on planning and reporting, of performance information.
of North Texas), examining such specific topics as: current issues in European bank regulation in relation to government spending and borrowing, the relative effectiveness of qualified audit reports as accountability mechanisms in Spain, long-range anomalies in the real return on corporate equity compared with realized returns from the real assets on corporations, stability and the recently expanded commodity futures trading in oil and gold, unintended consequences of electric power regulations requiring retail utilities to buy all the power produced by wind and solar generators linked to the grind, and evidence concerning the value of technical analysis to portfolio performance.
Craswell (1999) suggested that qualified audit reports are a strong indicator that independence has not been compromised, due to the competitive nature of auditing.

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