What is qualified opinion?
A qualified opinion will be issued by an auditor if, after conducting audit tests, the auditor has determined that “except for the issue being described”, the financial statements have been presented in accordance with the applicable financial reporting framework, and no material modifications exist. Therefore, this is an issue that is not considered material or pervasive. It is critical to understand that qualified opinions can be issued due to both:
1) Auditing issues (scope limitations) or;
2) Departures from GAAP (financial statement reporting issues)
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