The 4 Types of Audit Opinions

This video discusses the 4 types of audit opinions that an external auditor may provide after conducting an audit. Companies hire an external auditor to provide an opinion as to whether their financial statements have been presented fairly, and the types of opinions that may be issued are: an unqualified opinion, a qualified opinion, an adverse opinion, and a disclaimer of opinion.
An unqualified opinion, also known as a clean opinion, is issued when the auditor believes that the financial statements are free of material misstatements. A qualified opinion is issued when the financial statements are free of material misstatements, except for a single issue of improper accounting or a single issue in which the scope of the audit was limited. An adverse opinion is issued when the auditor believes the financial statements do contain material misstatements. Finally, a disclaimer of opinion is issued when the auditor cannot provide an opinion as to whether the financial statements are fairly presented. This may occur because the independence of the auditor has been compromised, the scope of the audit has been severely limited, or there are significant uncertainties surrounding the company's financial statements.-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES
* eepurl.com/dIaa5z
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* edspira.thinkific.com
-
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: podcasts.apple.com/us/podcast...
* Spotify: open.spotify.com/show/4WaNTqV...
* Website: www.edspira.com/podcast-2/
-
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
* www.edspira.com/index
-
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
-
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
* www.edspira.com/about/

[@maleina1206]

You seem to be the only person in the world who can talk about accounting without sounding dead inside :D So thanks for making these, you have taught me more than my professor!

[@pbr8316]

i know right? every video out there has these monotonic voices making the dry material even more sleep inducing

[@MauricioArevalo]

yes exactly!!

[@nancyjiang2103]

agree

[@NBT2469]

#facts but I agree with you.

[@rob8482]

I just passed Intermediate Accounting I. This is the 5th class in a row that I owe to these videos. This is a fact. When I'm so lost I feel I can't be helped, these videos bring it home every time. God bless you, I'm an older (to say the least) student that decided a degree was on my bucket list, plus I like to eat , and my body can't keep performing in construction. I am so grateful to you and these video's. Ten months to go for Accounting Bachelor's degree ....I'm soooooo excited!

[@Edspira]

Robert,
Thanks so much for your kind words. I'm very happy to hear that these video have helped you through 5 courses! Stay strong for the next 10 months. I can't wait to hear an update on your graduation. Take Care!

[@lukamagnotta7966]

I studied Audit for 2 years and my Lecturer could not explain this, yet you did it in 6 minutes. Thanks

[@shelleyzhang5474]

I've had so much help from these videos you make! Whatever I"m struggling to understand, your videos make sense of them all. Appreciate these so much!

[@huyenhoang627]

informative video! we cant thank you enough. I look forward to more videos on auditing process

[@abdallamohamedsaeed]

You are really very good in transferring your understand to us Thank you so much.

[@estonhumphrey2911]

Thanks for these videos!! They are great.

[@Edspira]

No problem, I'm glad you found them helpful!

[@CittizinKane]

I’m beginning my MBA program this summer, my colleague said this would be a great resource and it has!!
Thank you so much for the explanation as well as the white boarding to layout the ideas and organise it 🦾😃

[@WoodT92]

How has the MBA program gone?

[@Karina00K]

Thanks so much, this was soo helpful! Love, love your explanations!!! 😊😊

[@saurabhbajaj55]

Hello Prof, I just love your video. Thanks for making them. I was wondering if you can tell me the equipment's you use to make these videos. Specifically the microphone.

[@tiffanywhitmore4747]

Thank you so much for these videos. Explained thoroughly

[@Edspira]

You're very welcome!

[@lilong5202]

Very helpful!! I learned a lot

[@javierdiazdeleonmorales523]

Solid Video. Explained way better than my accounting professor. Why is it so hard for real professors to explain this? Odd...

[@bwalyagwendolinelombe5957]

You are the best 🙌🙌🙌

[@looksmustafa]

Excellent & Sooo easy explanation of 4 types of audit opinions

[@Edspira]

Glad you liked it!

[@shashiniwelgama1640]

Really helpful! thanks

[@francescociccone2224]

you've expressed this argument better than my university professor... and in just 7 minutes! (he tooks something like 50 minutes)

[@Edspira]

Thank you Francesco!

[@Finantheagile3]

ive had mine for almost 2 semesters now and have already learned more from this guy. You are a good professor Edspira

[@samraataa]

Very helpful:)

[@saifahamed7395]

thank you

[@MyFinancialFocus]

Independence is key when it comes to auditing for sure.

[@llaw3016]

thanks for the videoo!!

[@Edspira]

No problem!

[@walidhogan5995]

My fav tutor

[@LeslieTzy]

Is there a playlist for audit? That would be great

[@Edspira]

Not yet. I'm planning on getting to auditing videos, but as of now I don't have enough videos for a playlist. Thanks for watching!

[@icecold1805]

He does now, just go to his webpage.

[@surbhisota7131]

What if material misstatements are more than 1 but still not too many to render the financial statements useless ?

[@dnice8705]

What about modified and unmodified? Are these different from qualified and unqualified?

[@Edspira]

These terms can be used interchangably. Unmodified is the same as unqualified, and modified is the same as qualified. Great question!

[@nuuwelashetunyenga5710]

thank you...

[@RVNmax]

@@nuuwelashetunyenga5710 Well according to most other sources I have read, a modified opinion is any opinion that is not unmodified/unqualified. Therefore a qualified opinion, an adverse opinion and a disclaimer of opinion are all modified opinions.

[@aisyajaiza800]

Hello can u explain Eomp and Omp?? Thank youuu

[@praveen_tej]

can we get the notes ?

[@hnt7961]

"As the accounting records are not available to the auditors for their audit, this represents a limitation on the scope of work of the auditors. As the matter is material but not fundamental, a disclaimer of audit opinion should be given. The auditor will explain in their audit report, the reasons for their opinion and also a description that the necessary accounting records were lost and hence the auditor could not obtain sufficient and appropriate audit evidence to enable them to form an opinion on the FS as a whole."
Is this "Qualified audit report" or a "Disclaimer of opinion please? I chose Qualified report but the answer is Disclaimer of opinion. Thanks.

[@emmapaige111]

Is this video messed up for anyone else? I can hear it perfectly, but the video is a bunch of squiggly lines.

[@lalaaltaf1975]

Please change the background