An adverse opinion is an opinion made by an auditor indicating that a company's financial statements are misrepresented, misstated or inaccurate. An adverse opinion is an opinion made by an auditor indicating that a company's financial statements are misrepresented, misstated or inaccurate.
The Unqualified opinion is the best possible audit outcome, also the most often reported. Here, the auditor believes financial statements conform to GAAP and represent the entity's financial accounts fairly. The other three possible outcomes appear rarely: Qualified opinion, Adverse opinion, or Disclaimer of Opinion.
A social audit is a formal review of a company's endeavors in social responsibility. A social audit looks at factors such as a company's record of charitable giving, volunteer activity, energy use, transparency, work environment, and worker pay and benefits, to evaluate what kind of social and environmental impact a company is having in the locations where it operates.
A financial audit is conducted to provide an opinion whether "financial statements" (the information being verified) are stated in accordance with specified criteria. Normally, the criteria are international accounting standards, although auditors may conduct audits of financial statements prepared using the cash basis or some other basis of accounting appropriate for the organisation.
While a forensic audit may sound like something exciting you hear about on crime dramas like Law and Order or CSI, the truth is a little more mundane. A forensic audit is the process of reviewing a person’s or company’s financial statements to determine if they are accurate and lawful.
The purpose of a statutory audit is the same as the purpose of any other type of audit: to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.
An unqualified opinion is the most common type of auditor's report. Like any auditor’s opinion, it does not judge the financial position of the company or interpret financial data. It is just a letter in the auditor's report that states that the company's financial statements conform to generally accepted accounting principles (GAAP) and have not hidden any important facts.