Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the difference between Clean Audit Report and Qualified Audit Report?

user-image
Question added by Abdul Khalique , Finance Manager , Value Real Estate & Construction
Date Posted: 2016/03/08
Sohail Lone
by Sohail Lone , Assistant Manager Audit , Deloitte - United Arab Emirates

A CLEAN Audit report is an unmodified report which states financial statements of the entity are all  free from material misstatements and error.Furthermore a qualified opinion states financial statement are materially misstated and are not presented in accordance with IAS's

Aeisha Abdul Kader
by Aeisha Abdul Kader , Accountant / Professional Assistant , VM Apparel CC

There is no such thing as a "clean"audit report. There are three types of Opinions which the auditor will include in the audit report.

1. Unqualified Opinion - this means that the AFS present fairly in all material aspects of the business financial position/performance.

2. Adverse Opionion - this is where majority of the AFS are accurate but there is one area which does not present fairly / contain a material error. An explanation of the exact area and its implications will usually be added to the audit report.

3. Qualified Opinion - this means that the AFS are not accurate and do not present fairly the material aspects of the business.

More Questions Like This