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What are detailed differences between qualified and unqualified audit reports?

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Question added by epson manzini
Date Posted: 2016/03/19

What does it mean by emphasis of matter? Give some examples

Sohaib Tariq
by Sohaib Tariq , Internal Audit Section Head , beIN Media Group

In an unqualified report, the auditors conclude that the financial statements of your business present fairly its affairs in all material aspects. 

However, a qualified report is one in which the auditor concludes that most matters have been dealt with adequately, except for a few issues. An auditor’s report is qualified when there is either a limitation of scope in the auditor’s work, or when there is a disagreement with management regarding application, acceptability or adequacy of accounting policies. For auditors an issue must be material or financially worth consideration to qualify a report. The issue should not be pervasive, that is, the issue should not misrepresent the factual financial position. If issues are material and pervasive, the auditor issues a disclaimer or adverse opinion. A qualified audit report does not mean that your business is suffering, and it doesn't mean that your financial statement isn't transparent. It merely reflects the auditor’s inability to give a clean report.

Deleted user
by Deleted user

when an auditor "Usually CPA"  is working on financial statement for any business, he/ she usually give an "Opinion" about these financial statements. 

 

1) Unqualified opinion: when the auditor determines that the financial statements are clear of any misrepresentation.

 

2) Qualified opinion: this opinion is usually given when  there is a small mistakes but there is no misrepresentation.

 

For more info, you can read about auditing opinions.  

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