Unqualified Opinion

An unqualified opinion is an independent auditor's judgment that a company's financial statements are fairly and appropriately presented, without any exceptions, and in compliance with accounting standards.

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 is just a letter in the auditor's report that states that the company's financial statements conform to generally accepted accounting principles (GAAP) and have not hidden any important facts. It is issued when the auditor believes that all changes, accounting policies and their application and effects, have been disclosed. An unqualified report might state that “In our opinion, the financial statements give a true and fair view of the financial position of …”

This is compared to a qualified opinion, in which the auditor has determined that there is a material issue with regard to accounting policies – but one that does not misrepresent the factual financial position. Auditors typically qualify reports, with statements like "except for the following adjustments," when they have insufficient information to verify various aspects of the transactions and reports being audited. Qualified opinions may also be issued if the financial statements deviate from GAAP or have inadequate disclosure. If the financial statements have been truly misrepresented or misstated, the auditor might report an adverse opinion or a disclaimer of opinion.