qualified opinion

Popular Terms
Independent auditor's opinion, (given as part of an audit report) stating: (1) the audit was restricted in scope otherwise the financial statements present fairly the financial position of the firm, or (2) the audit was unrestricted and for the entire accounting period but an unqualified opinion cannot be expressed because (a) the account books and records do not completely reflect conditions that conform to the provisions of GAAP, (a) there has been a material change (between accounting periods) in accounting policies or in the methods of their application, (c) there are significant uncertainties regarding assumptions underlying the financial statements, (d) the auditor was unable to conduct complete verification of the accuracy of the accounting records due to certain omissions, (e) the auditor and the management were unable to reach a compromise agreement regarding method of treatment or valuation of certain assets, and/or (f) the management was unwilling or unable to correct certain unacceptable practices or situations.
Also called auditor's qualified opinion.


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