Unqualified Opinion

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Annual Report

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

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

    The common set of accounting principles, standards and procedures ...
  6. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
Related Articles
  1. A Look At Accounting Careers
    Personal Finance

    A Look At Accounting Careers

  2. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  3. An Inside Look At Internal Auditors
    Professionals

    An Inside Look At Internal Auditors

  4. Reading The Balance Sheet
    Investing Basics

    Reading The Balance Sheet

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center