Discuss the possible outcomes of an audit

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Four possible outcome of an audit are unqualified opinion, qualified opinion, disclaimer of opinion and adverse opinion.

1) Unqualified Opinion - In all material respects company's financial statement are true and fair. This is the hghest form of assurance an auditor can give.

2) Qualified Opinion - There is some exception in auditor's report in respect of current period accounting procedures or applications. In the auditor's opinion the result of some transactions creats material uncertainities.

3) Disclaimer of Opinion - When auditor expresses no opinon on the financial statements because either he did not find any financial statements or financial statements are not examined in accordance with audit standards.

4) Adverse Opinion - If financial statements in all material respects do not fairly represents the financial position of the company in accordance with GAAPs. Auditor will have to specify the issues for giving adverse opinion.

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