exception(redirected from takes exception)
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2. In an audit of a financial statement, a note stating that the auditor agrees with a majority of the statement, but not with certain parts. That is, exceptions are written when the auditor believes that the majority of the financial statement is accurate, but that there are a few inaccuracies scattered throughout. Exceptions are noted in the auditor's report.
(1) Estates or described lands specifically spelled out in a deed as not passing to the grantee. (2) Liens and claims specifically excluded from the coverage of a title insurance policy. (3) Liens and claims specifically excluded from a contract of sale.