These Are Five Audit Opinions In Financial Statements
In each audit, the auditor will conduct an audit based on the needs and methods required. An auditor will also give an opinion on the matter being audited. For example in the financial statements, then in addition to finding mistakes when conducting an audit, the auditor will also provide an opinion so that mistakes do not occur again. The opinion of the audit is the translation of the financial statements used by the company. Meanwhile, before we continue, we suggest you go to Gold Coast Xero Bookkeeper if you need the best bookkeeper to assist your business.
According to the professional standards of public accountants, there are five types of audit opinions, namely:
This opinion states that financial statements are fairly presented, in all material respects, financial position, results of operations, and cash flows of a particular institution in accordance with generally accepted accounting principles in the country where you run your business. This is the opinion expressed by the auditor in the standard form auditor’s report. Unqualified opinion criteria are; complete financial statements, three general standards have been met, evidence has been accumulated to conclude that three standards have been met, financial statements that have been presented in accordance with GAAP (Generally Accepted Accounting Principles), the auditor is not possible to add explanatory paragraphs and modification of the report.
Modified Unqualified Opinion
The auditor can add explanatory paragraphs or other explanations in the audit report. However, the auditor must at least find: an entity’s lack of consistency in implementing GAAP, great doubt, the auditor wants to emphasize something.
This opinion states that the financial statements state fairly, in all material respects, the financial position, results of operations and cash flows of a company or institution and are in accordance with the accounting principles applicable in your country.
The unreasonable opinion is an opinion that states that the financial statements do not present fairly the financial position, results of operations, and cash flows of certain companies or institutions in accordance with generally accepted accounting principles in your country.
This opinion states that the auditor does not express an opinion on the financial statements of a company or institution. This opinion is issued when the auditor is not satisfied with all the financial statements presented.