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Auditors Report

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)

29 November 2010

Dear All

What is the Exact Meaning of Qualified Report & Unqualified Report ?

Pls clarify With Examples

In Practical Which Report is Popular one ?

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11 Replies

Arvind Sharma (ACA) (1432 Points)
Replied 29 November 2010

Qualified Report....

When auditor highlights certain points/remark in his report about non compliance of requisite provisions and accounting standards by the client (auditee) then this report termed Qualified Report...

Unqualified report....

Audit Report having no comment on non compliance this report termed Unqualified Report...

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Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 29 November 2010

Originally posted by : Arvind
	Qualified Report.... When auditor highlights certain points/remark in his report about non compliance of requisite provisions and accounting standards by the client (auditee) then this report termed Qualified Report... Unqualified report.... Audit Report having no comment on non compliance this report termed Unqualified Report...

Thanks Dear for clarification with nice explanation

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Sunshine (Helping All) (10575 Points)
Replied 29 November 2010

in simple language...unqualified opinion means everything is fine...financial statements represent true and fair view image of financial position...all required disclosures have been made and accounts are kept as per law and provisions....

qualified opinion means there is some doubt....auditor thinks everything is fine but subject to certain matters on which auditor does not agree with the management....he gives an opinion along with few notes that this is not correct....there is some non compliance and books do not give 100% fair view of financial statement..matlab sab thik hai but kuch jagahon par gadbad dikh rahi hai.....

regards,

Sneha

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NILESH PUROHIT (article) (22 Points)
Replied 29 November 2010

THE QUALIFIED REPORT MEANS WHEN AUDITOR IS NOT SATISFIED FROM BOOKS OF ACCOUNT OF COMPANY OR CLIENT WHEN DECLAIR

REASON

1.BOOKS OF ACCOUNT MAINTAIN WITH FRAUD

2.CLIENT HAVE NOT PHYSICAL AVIDACE OF TRANSACTION LIKE NOT HVE SELLS AND PURCHASE BILL

DISQUALIFIED REPORT

WHEN CLIENT HAVE SUFFICIENT AVIDACE FOR AUDIT AND DURRING AUDIT OF BOOKS OF CLIENT AUDITOR NOT GENERATE ANY OF QUIERY IT'S CALLED DIS QUALIFIED REPORT.........................CANILESHPUROHIT(FINAL)

(Guest)

When Auditor Qualifies something in his report, it is Qualified Report.

If nothing is Qualified then it is unqualified Report.

prateek rijwani (Industrial Trainee) (125 Points)
Replied 30 November 2010

Whenever an auditor wants to put any reservation in his report,qualified report is issued..........

otherwise the report is called unqualified report i.e.clean report

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 30 November 2010

Thanks all For Clarification...

Batul (Article assistant) (207 Points)
Replied 14 January 2011

The most frequent type of report is referred to as the Unqualified Opinion, and is regarded by many as the equivalent of a “clean bill of health” to a patient,which has led many to call it the Clean Opinion, but in reality it is not a clean bill of health. This type of report is issued by an auditor when the financial statements presented are free from material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles (GAAP), which in other words means that the company’s financial condition, position, and operations are fairly presented in the financial statements. It is the best type of report an auditee may receive from an external auditor

A Qualified Opinion report is issued when the auditor encountered one of two types of situations which do not comply with generally accepted accounting principles, however the rest of the financial statements are fairly presented. This type of opinion is very similar to an unqualified or “clean opinion”, but the report states that the financial statements are fairly presented with a certain exception which is otherwise misstated.

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