An audit opinion is a review accompanying the financial statements based on a review of the accountant's opinion on the procedures and records used to provide the statements, whether or not that the financial statements contain material errors. There are four types of audit opinions: standard unqualified opinion, qualified opinion, adverse opinion and disclaimer. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Standard Unqualified Opinion Standard unqualified opinion is also called clean opinion. Audit reports with an unqualified standard opinion are issued by an auditor when the financial statements are judged to be free from material misstatement and fairly presented in accordance with Generally Accepted Accounting Principles (GAAP). Additionally, a standard unqualified opinion is expressed about an entity's internal controls if management has declared responsibility for establishing and maintaining it and the auditor is required to carry out field work to test its effectiveness. It is the best type of report an auditee can receive from an external auditor. The conditions for a standard unqualified opinion show the following: All financial statements which are statement of financial position, statement of comprehensive income, statement of retained earnings and statement of cash flows. The three general standards were respected in all details of the assignment. Sufficient evidence was gathered and the auditor handled the engagement in a way that allowed him to conclude that the three standards of fieldwork were met. achieved. The financial statements are presented in accordance with generally accepted accounting principles (GAAP). There are no situations that require adding an explanatory paragraph or changing the wording of the report. A standard unqualified audit report consists of a report title, report address, introductory paragraph, scope paragraph, opinion paragraph, name of the audit firm, and date of the audit report. Auditing standards require that the audit title include "independent" to demonstrate to the user that the report was impartial in all particulars. The report is normally addressed to the company, its shareholders or the board of directors. The introductory paragraph is the first paragraph of the auditor's report and states the audit work performed and identifies the responsibilities of the auditor and management in relation to the financial statements. The second paragraph, or scope, describes the scope of the audit work and provides a general description of the nature of the work. The rest briefly describes the important compliance of an audit. The last paragraph, as an opinion paragraph, expresses the auditor's opinion on the financial statements and their compliance with generally accepted accounting principles (GAAP) based on the audit findings. The name determines the CPA firm or professional performing the audit. The correct date for the report is the end of the fieldwork when the auditor has obtained sufficient audit evidence to support the opinion. Qualified Opinion A qualified opinion is provided when a company's financial records do not conform to generally accepted accounting principles (GAAP). Although the formulation of a qualified opinion is very similar to that of a standard unqualified opinion, the auditor provides an additional paragraph that includes exclusions from the fairness of the financial statements and indicates the reasons why the auditor's report is not unqualified. Keep in mind: this is.