Unqualified Opinion


DEFINITION of 'Unqualified Opinion'

An independent auditor's judgment that a company's financial records and statements are fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles (GAAP). An unqualified opinion is the most common type of auditor's report.

BREAKING DOWN 'Unqualified Opinion'

An unqualified opinion is issued when the independent auditor believes that the company's financial statements are sound; that is, the statements are free from material misstatements. This is different from a qualified opinion which is issued when the independent auditor discovers something in the financial statements that is subject to major concern.

  1. Financial Statements

    Records that outline the financial activities of a business, ...
  2. Auditor

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

    The common set of accounting principles, standards and procedures ...
  4. Annual Report

    1. An annual publication that public corporations must provide ...
  5. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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