What is an Unqualified Opinion?
How Does an Unqualified Opinion Work?
For example, let’s assume that Company XYZ is a publicly traded company. After the year-end, Company XYZ hires Auditor ABC to conduct an audit of its financial statements, practices and controls for the previous fiscal year. Auditor ABC discovers no material errors in Company XYZ’s practices (for example, the auditor verifies that Company XYZ has accounted for correctly, has kept good records regarding its cash accounts, and provided adequate records for review regarding depreciation). As a result, Auditor ABC an unqualified opinion, which appears in the form of a letter that accompanies Company XYZ’s financial statements.
Why Does an Unqualified Opinion Matter?
An unqualified opinion is a good thing. It is a notice to investors and regulators that the auditor has no significant concerns about the accuracy of a company’s financial records and that it has verified that the company is following rules. The opposite of an unqualified opinion is a , which is a flag from the auditor.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Warren Buffett has been extolled as one of history's greatest investors and the returns...Read More →
If you're a parent, here's a question that has probably crossed your mind: How do I teach my kids about money...Read More →