What does unqualified opinion mean on the CPA exam?
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Unqualified opinion. The clean opinion: the statements are presented fairly in all material respects. The PCAOB calls it unqualified; the AICPA calls the same thing unmodified.
Defined against AU-C 700.18.
Which CPA exam sections use unqualified opinion?
Unqualified opinion appears in the AUD section of the CPA exam.
Other terms defined against AU-C 700
- auditor's opinion: The conclusion the audit exists to produce.
- auditor's report: The document carrying the opinion, with its sections in a fixed order.
- present fairly: The overall judgment behind an opinion: the statements as a whole give a true picture within the applicable framework, beyond mere technical compliance with each rule.
Other names for unqualified opinion
unmodified opinion
Related terms
- adverse opinion: The opinion given when misstatements are both material and pervasive, so the statements are not fair at all.
- qualified opinion: The opinion given when a misstatement is material but not pervasive, or when evidence the auditor could not obtain would have been.
- emphasis-of-matter paragraph: A paragraph drawing attention to something already properly presented in the statements.
- description of the system: Management's account of the service it provides and the controls around it.
- disclaimer of opinion: The auditor states that no opinion is expressed, because they could not get evidence and the possible effect is pervasive.