Accountant's Opinion

Written By:
Paul Tracy
Updated August 5, 2020

What is an Accountant's Opinion?

An accountant's opinion is a concise written statement by a certified accountant concerning the accuracy of a company's financial records.

How Does an Accountant's Opinion Work?

An accountant's opinion is the first document in a company's financial report. Prepared by an independent accounting professional, it expresses the accountant's standpoint on a company's accounting methods. In addition, it expresses the accountant's confidence in the veracity of the company's financial statements insofar as they reflect the underlying financial data. An unqualified opinion reflects a positive viewpoint on the part of the accountant and is preferable to a qualified opinion, which expresses concern.

Why Does an Accountant's Opinion Matter?

An accountant's opinion provides the readers and analysts of a company's financial report with the educated opinion of a third party. Though it indicates to the reader how he should approach the financial figures, the opinion can be highly detrimental if negative (qualified), because it can dissuade prospective investors and may impel some holders to divest.