In this lesson, Nick Palazzolo, CPA, examines the various types of audit opinions that auditors can issue. He highlights four key opinions: disclaimer of opinion, qualified opinion, adverse opinion, and unmodified/unqualified opinion. To help understand these opinions, a chart is utilized to present the differences between them and the context in which each may be issued. Nick emphasizes the importance of understanding the term "pervasive" as it is essential in differentiating between a qualified opinion and an adverse opinion. Furthermore, he clarifies the distinction between issues that arise during an audit and those present within the financial statements themselves and how they impact the opinion issued. This lesson is crucial for grasping a vital component of auditing and will be beneficial in answering multiple-choice questions or simulations on this subject matter.
Lesson: Types of Audit Opinions
In this lesson, Nick Palazzolo, CPA, examines the various types of audit opinions that auditors can issue. He highlights four key opinions: disclaimer of opinion, qualified opinion, adverse opinion, and unmodified/unqualified opinion. To help understand these opinions, a chart is utilized to present the differences between them and the context in which each may be issued. Nick emphasizes the importance of understanding the term "pervasive" as it is essential in differentiating between a qualified opinion and an adverse opinion. Furthermore, he clarifies the distinction between issues that arise during an audit and those present within the financial statements themselves and how they impact the opinion issued. This lesson is crucial for grasping a vital component of auditing and will be beneficial in answering multiple-choice questions or simulations on this subject matter.
Updated: June 22, 2023 Create an account