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What information is required in an unqualified opinion?

Remember, an unqualified opinion is for issuers (an unmodified opinion is used for nonissuers). When the audit team of an issuer determines that the financial statements have been presented in accordance with the applicable financial framework, and that there are no material misstatements due to error or fraud, the audit team will issue an unqualified opinion. If an auditor reports an unqualified opinion the following paragraphs will be applied in an auditor’s report:

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    Unqualified opinions are issued for issuers (public companies). If the audit team has determined that, after performing all necessary audit procedures, that there are no material departures from the conceptual framework, the audit team may issue an unqualified opinion. Reporting an unqualified opinion would consist of an introductory paragraph, management responsibility paragraph, auditor responsibility paragraph,...

  • What is a clean audit opinion?

    If you hear the phrase “clean audit opinion” or “clean opinion”, that means that the company received an unqualified or unmodified audit opinion. A clean audit opinion is great news for the company because that means that the audit team believes the financial statements are reasonably stated (i.e. free from material misstatement). Additionally, that also...

  • What is the difference between an unmodified and unqualified audit opinion?

    Issuers (public companies) receive unqualified audit opinions while nonissuers (private companies) would receive unmodified opinions. The requirements for the audit report vary between the two types of audit opinions.