Qualified Opinion

What is a Qualified Opinion?

A Qualified Opinion is an auditor's report that suggests the financial statements of a company are generally presented fairly and comply with GAAP (Generally Accepted Accounting Principles) except for certain areas where exceptions exist.

Short Description: An auditor's statement indicating that the company's financial statements are mostly accurate but contain specific exceptions that require attention.

• Nature of Issues: May relate to limited scope of audit procedures, disagreements with management, or accounting standards application.
• Impact on Statements: Usually relates to a specific transaction or group of transactions, not affecting the entire financial statement.

While not as serious as an adverse opinion, a qualified opinion indicates areas that need corrective measures to fully comply with the relevant accounting standards.