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Basic Question 1 of 5

Most auditors' reports are ______.

A. qualified
B. adverse
C. unqualified
D. a disclaimer of opinion

User Contributed Comments 7

User Comment
cfstester Except that if they are qualified, they will likely be fired next year.
Done Then what is a Qualified opinion?
anricus you would imagine a qualified opionion is a good one. but in fact an unqualified is the good one! Qualified - auditors disagree with accounting treatment (perhaps on one area)

Adverse - accounts are completly useless and wrong

Disclaimer - appropriate evidence not in place to form an opinion.
teddajr Qualified ->Disagreements exist.
Unqualified -> In accordance.
kutta2102 The term 'unqualified' should be understood with respect to what the auditor's report is trying to say - we've audited the company's financials and are COMPLETELY on-board with it - no caveats. If the audiotr's report said something like "we are in agreement with the accuracy of financial statements but the management did not take into consideration factors x,y,z...." -now that's a qualified opinion.
assiduous unqualified = I have an opinion and I do not need to qualify it
qualified = I have an opinion BUT I need to qualify it
adverse = I have an opinion; the financial statements are useless
disclaimer = I DO NOT have an opinion (a disclaimer basically say, "yes, I reviewed the financial statements but I was unable to form an opinion")
kingirm is it something good ????
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I used your notes and passed ... highly recommended!


Learning Outcome Statements

describe the objective of audits of financial statements, the types of audit reports, and the importance of effective internal controls;

CFA® 2024 Level I Curriculum, Volume 2, Module 16.