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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.
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Qualitative

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

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

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