Auditor’s Opinion relating to different Reports

Auditor’s Opinion relating to different Reports

• Un-Qualified opinion:

Un-qualified  opinion  used  in  un-qualified  report  where  financial  statements  as
already accurate and all have been amended as per auditor’s advised.

• Qualified Opinion:

Qualified  opinion used  in a  qualified report  where the  auditor’s  dissatisfaction and
objection raised have not been properly resolved.

The  auditor  used  the  words  “except  for  above”  after  mentioning  the  objection
where the disagreement is reasonably estimated such as amounts of sales or
any other account and provision for depreciation.

The  auditor  used  the  word  “subject  to  above”  when  the  difference  cannot  be
reasonably  estimated  but  it  exists  there  such  as  reserve  for  bad  debts  and
existence of contingent liability etc.

• Adverse Opinion:

Adverse  opinion  is  that  where  the  difference  is  so  much.  Material  and  financial
statements have not been prepared according to GAAP. The auditor used  the phrase that
“the financial statements do not give true and fair view”.

• Dis-Claimer:

This opinion is given when due to lack of evidence provided for reaching uncertainty is
not resolved and auditors are not in a position to get full information.
The auditor will use the word “not in a position to express an opinion their upon”.
(Normally  this  type  of  opinion  is  carried  out  in  private  limited  companies  and  small
companies.