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Types of Audit Opinions

Adverse Opinion
Adverse Opinion

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.

Disclaimer Opinion
Disclaimer Opinion

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.

Qualified Opinion
Qualified 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.

Unqualified Opinion
Unqualified Opinion

'Unqualified Opinion' 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.

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