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In: Accounting

what is the difference between an audit and a qualified opinion?

what is the difference between an audit and a qualified opinion?

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Expert Solution

Audit: Audit is the vouching of Incomes, Expenses of an entity and verification of assets and liabilities of an entity.

It also incudes the verification whether any discrepancies are practised which are not in accordance with generally accepted accounting principles.

Audit is performed in all the spheres of entity's activities and the deficiencies are observed and reported to appropriate authorities.

There are various types of Audit:

1. Statutory Audit

2. Internal Audit

3. Stock Audit

4. Forensic Audit

5. Tax Audit

6. Compliance Audit etc....

An Audit report is given to the concerned people after the conclusion of audit.

If in the process of audit, the auditor has observed any such deficiency or non compliance with will potentially affect the interest of stake holders he will Qualify his opinion. Such a report is called Qualified Audit Report. The opinion on entity performance and maintanence of accounts based on any any shortcoming is called as Qualified Opinion.

This is the difference between an audit and qualified opinion.

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ekkarill92 answered 1 year ago
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