Definition of Unqualified opinion:
An unqualified opinion letter in an audit report might state “In our opinion, the financial statements give a true and fair view of the financial position of XYZ Company.”.
An unqualified opinion is an independent auditor's judgment that a company's financial statements are fairly and appropriately presented, without any identified exceptions, and in compliance with generally accepted accounting principles (GAAP). An unqualified opinion is the most common type of auditor's report. Like any auditor’s opinion, it does not judge the financial position of the company or interpret financial data. It indicates that as a result of the testing done during the audit, the independent auditor has enough information to conclude that the company's financial statements conform to GAAP and fairly present the company's financial position for the statement time frame. It is issued when the auditor believes that all changes, accounting policies and their application and effects, have accurately been disclosed.
Independent auditors declaration that he or she has no reservation in certifying that the audited firms financial statements (1) adequately disclose material information, (2) present fairly its financial position, and (3) show results of its operations in conformity with the provisions GAAP. Also called clean opinion.
Meaning of Unqualified opinion & Unqualified opinion Definition