Qualified vs. Adverse vs. Disclaimer
A qualified opinion is given in matters in which issues discovered in the financial statements are not pervasive and do not misrepresent the actual financial position of a business. It is a reflection of the auditor’s inability to give an unqualified opinion. If the issues discovered during the audit result in material misstatements, the opinion is escalated to an adverse opinion. This opinion results in the company needing to reissue and complete another audit of its financial statements, while a qualified opinion is still acceptable to lenders, creditors and investors. If an auditor is unable to complete an accurate audit report, it may issue a disclaimer of opinion. This indicates neither an unqualified nor qualified opinion regarding the financial statements, while a qualified opinion still gives an audit opinion regarding a majority of the financial statements.
Read more: Qualified Opinion https://www.investopedia.com/terms/q/qualifiedopinion.asp#ixzz508tPbGpJ
Follow us: Investopedia on Facebook