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Hello Team,
An unqualified audit report is an audit report with nothing outstanding or out of the ordinary (nothing to see, no need to raise any issues.) A qualified report is an audit report with some sort of "but" or "except" in it. For example, if the auditors cannot agree with the client on the balance of the inventory accounts but the client insists they are correct, the auditors may issue a qualified report that basically states that everything else they've checked is in line with industry practice, with the exception of the inventory.
Other DifferenceAnother difference lies in the wording of the opinion paragraph of an auditor’s report. When issuing an unqualified report the auditor might write, “In our opinion, the financial statements give a true and fair view of the financial position of XYZ Enterprises as of …” Conversely, the opinion paragraph in a qualified report might begin with, “In our opinion, except for the effects of the following adjustments, if any, as might have been determined to be necessary had we been able to perform tests on companies stocks, the financial statements give a true and fair view of the financial position of XYZ Enterprises as … “ Notice that there are “exceptions” in the opinion paragraph of the qualified report.
Regards,
Saiyid
