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. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  2. A Look At Accounting Careers
    Personal Finance

    A Look At Accounting Careers

  3. An Inside Look At Internal Auditors
    Professionals

    An Inside Look At Internal Auditors

  4. Payback Period
    Investing

    Payback Period

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center