Auditor's Opinion (Qualified vs. Unqualified)
The auditor's verdict on whether the financial statements are fairly presented.
What is Auditor's Opinion (Qualified vs. Unqualified)?
An unqualified (clean) opinion says the statements fairly present the company's position under GAAP - the good outcome, despite the name. A qualified opinion says they are fair except for a specific issue. An adverse opinion says they are not fairly presented. A disclaimer means the auditor could not form an opinion. Audited statements appear in the 10-K; 10-Q quarterlies are unaudited.
Auditor's Opinion (Qualified vs. Unqualified): a worked example
Investors react badly to a qualified or adverse opinion; an unqualified opinion is what you want.
More terms in Economics & Financial Reporting
Business Cycle
The recurring pattern of expansion, peak, contraction, and trough.
Leading, Coincident & Lagging Indicators
Data series that move before, with, or after the business cycle.
Deflation vs. Disinflation
Falling prices versus a slowing rate of price increases.
Currency Valuation & Exchange Rates
What one currency buys of another, and who wins when it moves.
Sovereign Debt
Bonds issued by a national government.
Trade Deficit
A country imports more goods and services than it exports.
Income Statement
Revenue, expenses, and profit over a period of time.
Balance Sheet
Assets, liabilities, and equity at a single point in time.