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In: Accounting

As CEO, which type of audit opinion would you prefer most and why?

As CEO, which type of audit opinion would you prefer most and why?

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Expert Solution

The "Unqualified" opinion is the best possible audit outcome. And, it is by far the most frequently appearing.

Unqualified Opinion

Often called a clean opinion, an unqualified opinion is an audit report that is issued when an auditor determines that each of the financial records provided by the small business is free of any misrepresentations. In addition, an unqualified opinion indicates that the financial records have been maintained in accordance with the standards known as Generally Accepted Accounting Principles (GAAP). This is the best type of report a business can receive.

Typically, an unqualified report consists of a title that includes the word “independent.” This is done to illustrate that it was prepared by an unbiased third party. The title is followed by the main body. Made up of three paragraphs, the main body highlights the responsibilities of the auditor, the purpose of the audit and the auditor’s findings. The auditor signs and dates the document, including his address.

Thanks

ekkarill92 answered 1 year ago
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