Answer
An unqualified opinion affirms that an entity's financial statements are fairly presented in all material issues. The unqualified opinion affirms that generally accepted accounting principles have been complied with in determining an entity's financial positions and cash flows, among other financial results of operations.
A qualified opinion is an opinion that has what is called "an exception to the standard opinion." The exception does not justify the wholesome invalidation of financial statements. Ordinary circumstances could contribute to an auditor's deviation from the normal unqualified opinion: limited scope, insufficient disclosures in the financial statement and failure of an entity to follow GAAP.
Work Step by Step
An unqualified opinion affirms that an entity's financial statements are fairly presented in all material issues. The unqualified opinion affirms that generally accepted accounting principles have been complied with in determining an entity's financial positions and cash flows, among other financial results of operations.
A qualified opinion is an opinion that has what is called "an exception to the standard opinion." The exception does not justify the wholesome invalidation of financial statements. Ordinary circumstances could contribute to an auditor's deviation from the normal unqualified opinion: limited scope, insufficient disclosures in the financial statement and failure of an entity to follow GAAP.
