Unqualified audit opinion

If the statement that “in our opinion the financial statements give a true and fair view” is given as an audit opinion then the audit is unqualified. This is what should happen.

The accounts of listed companies are almost always given an unqualified opinion on the audit report. Potential problems will be identified and dealt with ahead of the release of the financial statements.

Even an unqualified audit opinion is an opinion, not a guarantee. Auditors check the accounts, but they usually rely on the management of the company to some extent: an auditor can be fooled by extensive falsifying of the accounts, especially if it is systematically organised by the management.

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