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Types of Audit Opinion

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Types of Audit Opinion

An Unqualified Opinion A Qualified Opinion An Adverse Opinion A disclaimer of Opinion

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An Unqualified Opinion
Clean Opinion Financial Statements are Presented

according to GAAP

Audit performed accordance GAAS

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An Unqualified Opinion with Explanatory Language Added to Report

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A Qualified Opinion
A Qualified Opinion is that in which financial statements are presented fair except some elements of deficiency from GAAP

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A Qualified Opinion
Financial Statements must be fair Except of following elements
Deficiency in financial statements from

GAAP
Deficiency must mentioned in audit

report
Exception must be sufficiently
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significant

An Adverse Opinion
In an adverse opinion financial statements are not presented fairly according to GAAP

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Basic Elements of adverse Opinion

Result of Operations Cash flows Disclose the reasons for adverse opinion

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A Disclaimer of Opinion
In Disclaimer of opinion auditor unable to form an opinion in fairness of financial statements Disclaimer opinion means auditor do no have an adequate basis for expressing an opinion
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A disclaimer of Opinion
Unable for an opinion Significant scope limitation Major uncertainties Other disclaimers issues
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