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 ?
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.
Therefore, qualified audit reports represent the 14% of the total reports examined.
As shown by Table 1, the number of firms with qualified audit reports decreases systematically during the subperiod 2001-2006, and increases after the year 2006, being particularly meaningful the situation in 2008, at the beginning of the international financial crisis, showing an almost 100% increase in the number of firms with qualified reports.
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.
1) See Laing (2007) for details of qualified audit reports prior to 2007.
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.
Additionally, some authors document that the join provision of both services can cause a reduction of qualified audit reports (Wines, 1994), more earnings management (Frankel, Johnson & Nelson, 2002) or more errors waived, among others, reducing audit quality as well (Hay, Knechel & Wong, 2006b).
Charles Tilley asks why qualified audit reports are still accepted in the public sector ("A favourable variance", September).
For three years in succession the KwaZulu-Natal (KZN) Department of Education has not only received qualified audit reports but has also not managed to deal with inherent organisational challenges.
CIMA has responded to the Accounting Standards Board's consultation paper, "IASB ED of a proposed IFRS for SMEs", and to the Financial Reporting Council (FRC) on its proposal to encourage the voluntary disclosure of qualified audit reports.
SAS 34 required a qualified audit report if there was uncertainty regarding the recoverability of assets and the classification of liabilities.

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