Auditor's Opinion

AAA

DEFINITION of 'Auditor's Opinion'

A certification that accompanies financial statements and is provided by the independent accountants who audit a company's books and records and help produce the financial statements. The auditor's opinion will set out the scope of the audit, the accountant's opinion of the procedures and records used to produce the statements, and the accountant's opinion of whether or not the financial statements present an accurate picture of the company's financial condition.

INVESTOPEDIA EXPLAINS 'Auditor's Opinion'

There are generally three types of auditor's opinions. A "clean" or unqualified opinion states that the financial statements present a fair and accurate picture of the company and comply with generally accepted accounting principles. A qualified opinion contains exceptions, which may include the scope of the audit.

An adverse opinion contains a major exception or warning. The most well-known adverse opinion is the "going-concern" exception, in which the accountant expresses doubts about the company's ability to remain in business.

RELATED TERMS
  1. Statutory Audit

    A legally required review of the accuracy of a company's or government's ...
  2. Audit Committee

    An operating committee of a company's board of directors that ...
  3. Auditor

    An official whose job it is to carefully check the accuracy of ...
  4. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  5. Independent Auditor

    A certified public accountant who examines the financial records ...
  6. Opinion Shopping

    The practice of searching for an outside auditor who will provide ...
Related Articles
  1. Examining A Career As An Auditor
    Professionals

    Examining A Career As An Auditor

  2. What is the difference between a compiled ...
    Investing

    What is the difference between a compiled ...

  3. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

  4. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center