Qualified opinions Under what circumstances would an auditor issue a qualified opinion?
The auditor would be likely to issue a qualified opinion when the auditor has completed the audit and has concluded that the financial statements, taken as a whole, are fairly stated except for the following situations:
? There is a material, unjustified departure from GAAP, but the auditor believes that the financial statements taken as a whole are fairly presented except for this specifically identifiable GAAP departure. Not overshadowing to the remainder of financial statement.
? Management's disclosures are not adequate, but the lack of disclosure is not pervasive.
? The auditor has conducted the audit and is unable to obtain sufficient appropriate evidence on a particular area because of scope limitations or the lack of such evidence. (Not significant enough to render disclaimer of opinion).
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