Resources  ❯  Accounting Terms

Qualified Opinion

[KWAL-uh-fahyd uh-PIN-yuhn]

What is the definition of Qualified Opinion?
An audit opinion that states the financial statements are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP), except for the effect of a matter to which a qualification relates, often due to a scope limitation or inability to obtain sufficient appropriate audit evidence.
Using Qualified Opinion in an Example

During an audit, if an auditor is unable to verify the inventory figures due to limitations in accessing certain warehouse locations, they may issue a qualified opinion indicating that except for the inventory figures, the rest of the financial statements are fairly presented.

Using Qualified Opinion in a sentence

The company received a qualified opinion from their auditors because they could not confirm the valuation of certain complex financial instruments.

Related Terms

Qualified Intermediary

A Qualified Intermediary refers to a person that acts as an intermediary qualified under certain sections of the U.S. Internal Revenue Code to undertake specified activities.
Learn More

Qualitative

Relating to, measuring, or measured by the quality of something rather than its quantity.
Learn More

Qualitative Analysis

Analysis that evaluates important factors that cannot be precisely measured, focusing on the quality and characteristics of the subject matter rather than numerical data.
Learn More

Quality

The degree to which a product or service meets or exceeds customer expectations by consistently achieving desired specifications and standards.
Learn More

Quantitative Analysis

Analysis that focuses on measurable and quantifiable factors such as financial metrics, statistical data, and mathematical models, often used to predict outcomes or assess financial performance.
Learn More

Quantity

An amount or number of a specific item or category.
Learn More

Quarter

A quarter refers to one of four three-month intervals in a year, commonly used in financial and business contexts to divide the fiscal or calendar year for reporting purposes.
Learn More

Quarterly Reports

Quarterly reports, also known as interim financial statements, are financial statements issued by companies every three months to provide a periodic update on their financial health, including revenues, expenses, net profit, and cash flow, during the fiscal year.
Learn More

Quasi-Reorganization

A type of corporate restructuring in which, with shareholder approval, management revalues assets and eliminates deficit by adjusting it against other equity accounts, effectively resetting the financial structure of the company without forming a new corporate entity or requiring court intervention.
Learn More

Quick Assets

Quick assets are current assets that are either cash or can be quickly converted into cash, typically within a short period, such as cash on hand, marketable securities, and accounts receivable.
Learn More

Quick Ratio

A liquidity metric that measures a company's ability to cover its current liabilities with its most liquid assets, without relying on the sale of inventory.
Learn More

1031 Question? Ask ARTE

Deferred's AI 1031 Research Assistant is trained on 8,000+ pages of US tax law and outperforms human CPAs by 22%+

CHAT NOW
Deferred.com Resources

Recent Posts

Can you 1031 exchange a vacation home?
Because the 1031 Exchange rules permit owners to use the property part of the year, exchangers can have a cash-flowing, appreciating investment that also serves as their semi-permanent vacation property.
Aaron LaRue
1031 Improvement Exchange
Learn how to leverage an improvement exchange (using exchange funds for new constructions, additions, or upgrades) to increase the value of your real estate investment portfolio.
Aaron LaRue
1031 Exchange Options
Take advantage of our profit-generating ideas to use the 1031 Exchange to make your property portfolio more profitable.
Aaron LaRue
What are the disadvantages of a 1031 exchange?
The 1031 Exchange is a great way for businesses and investors to take advantage of the additional value of their real estate and put it into their next purchase, but are there tradeoffs to consider?
Aaron LaRue
What Happens to Depreciation in a 1031 Exchange?
Depreciation recapture is a process then enables the IRS to collect taxes on the financial gain you have made from the sale of an asset. Exactly what depreciation recapture rate will apply will depend on your individual circumstances.
Aaron LaRue
Form 6252: Report an Installment Sale
Use this form to report income from an installment sale on the installment method.
Aaron LaRue
About DeferredReviewsPricingSchedule Intro Call
Partner with DeferredCareersEngineering Blog
ResourcesARTE: AI Tax AssistantDeferred Gains Calculator1031 Exchange Articles
Accounting Terms1031 Rules per StateFind a 1031 Intermediary
© 2024 Deferred Inc.
Terms PrivacyCommunicationsContact