Piecemeal Opinion

AAA

DEFINITION of 'Piecemeal Opinion'

An auditor's assessment of the accuracy of a portion of a company's financial statements. An auditor might provide a piecemeal opinion in a situation where complete information is not available. Generally Accepted Accounting Principals (GAAP) no longer allow auditors to provide piecemeal opinions.

INVESTOPEDIA EXPLAINS 'Piecemeal Opinion'

When they were allowed, piecemeal opinions had to be extremely specific in order to be credible since many components of a company's financial statements are interrelated. For example, according to former SEC Chief Accountant Carman G. Blough, it might be possible to express a piecemeal opinion on the accuracy certain items listed on a company's balance sheet, but it would not be possible to express a piecemeal opinion on the balance sheet as a whole because of the balance sheet's relationship with other financial statements, such as the income statement.

RELATED TERMS
  1. Unqualified Audit

    Also known as a complete audit. An audit that has been performed ...
  2. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  3. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  4. Generally Accepted Auditing Standards ...

    A set of systematic guidelines used by auditors when conducting ...
  5. Independent Auditor

    A certified public accountant who examines the financial records ...
  6. Internal Audit

    The examination, monitoring and analysis of activities related ...
Related Articles
  1. Bonds & Fixed Income

    Accounting Rules Could Roil The Markets

    FAS 142 is an accounting rule that changes the way companies treat goodwill. Be aware of the impact it has on reported earnings to avoid making bad investment decisions.
  2. Markets

    A Clear Look At EBITDA

    This measure has its benefits, but it can also present earnings through rose-colored glasses.
  3. Fundamental Analysis

    Impairment Charges: The Good, The Bad And The Ugly

    Impairment charge is a term for writing off worthless goodwill, but you need to know what its potential impact is on EPS.
  4. Fundamental Analysis

    Detecting Accounting Manipulation

    "One-time charges" and "investment gains" are two strategies companies can use to distort their numbers.
  5. Investing

    What is the difference between IAS and GAAP?

    To answer this question, we must first define what IAS and GAAP are, in order to get a better grasp of the function they serve in the world of accounting.The acronym "IAS" stands for International ...
  6. Fundamental Analysis

    How should a company budget for capital expenditures?

    Learn the difference between capital expenditures and operational expenses, and discover the importance of budgeting for capital expenditures.
  7. Fundamental Analysis

    What is accrual accounting in Oracle Apps?

    Learn more about Oracle Applications, an enterprise software system that enables businesses to streamline information systems – including accrual accounting.
  8. Fundamental Analysis

    Why do companies publish P&L statements?

    Understand the basics of the profit and loss statement, including why it is published and how it is used to assess financial stability.
  9. Investing Basics

    What is the first day of the quarter?

    Learn when the first day of the quarter is. Explore why investors and analysts prefer to compare results year-over-year due to seasonality.
  10. Investing Basics

    What is the difference between a quarter and a year in finance?

    Examine the difference between a fiscal quarter and a fiscal year. Learn why investors examine both quarterly and annual growth rates.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center