What is Audit Opinion?
An audit opinion is the auditor’s formal conclusion on whether the financial statements give a true and fair view in accordance with the applicable financial reporting framework. The four types are unqualified (clean), qualified, adverse and disclaimer of opinion.
How It Works
- Auditor plans and performs procedures to gather audit evidence.
- Evaluates whether the evidence supports the financial statements.
- Issues one of four opinion types in the audit report.
- Communicates findings to those charged with governance.
Saudi Context
Saudi listed companies must publish their auditor’s report alongside annual financial statements on Tadawul; an unqualified opinion is the norm and any modification draws investor attention.
Example
A clean (unqualified) opinion states that the financial statements present fairly, in all material respects, the financial position and performance of the entity.