Qualified Opinion

A A A

DEFINITION

A statement written upon the front page of an audit done by a professional auditor. A qualified opinion suggests that the information provided was limited in scope and/or the company being audited has not maintained GAAP accounting principles.

INVESTOPEDIA EXPLAINS

Contrary to its connotation, a qualified opinion is not a good thing. Auditors that deem audits as qualified opinions are advising whomever is reading the document that the information within the audit is not complete or that the accounting methods used by the company do not follow GAAP.


RELATED TERMS
  1. Accounting

    The systematic and comprehensive recording of financial transactions pertaining ...
  2. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities and shareholders' ...
  3. Annual Report

    1. An annual publication that public corporations must provide to shareholders ...
  4. Auditor's Report

    Recorded in the annual report, the auditor's report tests to see that a corporation's ...
  5. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures that companies ...
  6. Income Statement

    A financial statement that measures a company's financial performance over a ...
  7. Opinion Shopping

    The practice of searching for an outside auditor who will provide an unqualified ...
  8. Adverse Opinion

    A professional opinion made by an auditor indicating that a company's financial ...
  9. Andersen Effect

    A reference to auditors performing more careful due diligence when auditing ...
  10. Auditor's Opinion

    A certification that accompanies financial statements and is provided by the ...
Related Articles
  1. Detecting Accounting Manipulation
    Fundamental Analysis

    Detecting Accounting Manipulation

  2. Core Earnings Strip Away
    Options & Futures

    Core Earnings Strip Away "Creative" ...

  3. What is the difference between IAS and ...
    Investing

    What is the difference between IAS and ...

  4. Free On Board
    Professionals

    Free On Board

  5. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  6. An Introduction To The CMA Designation
    Professionals

    An Introduction To The CMA Designation

  7. How Return On Equity Can Help You Find ...
    Economics

    How Return On Equity Can Help You Find ...

  8. Top 4 Most Competitive Financial Careers
    Professionals

    Top 4 Most Competitive Financial Careers

  9. 4 Leverage Ratios Used In Evaluating ...
    Fundamental Analysis

    4 Leverage Ratios Used In Evaluating ...

  10. Operating Profit
    Investing

    Operating Profit

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center