A Qualified Opinion is the second highest opinion an auditor can render after completing an audit. A qualified opinion indicates there is an issue with the entity's financial statements. This includes the fact that the financial statements may not conform to Generally Accepted Accounting Principles (GAAP) or Generally Accepted Auditing Standards (GAAS). A qualified opinion is referred to an "except for" opinion.
Hierarchy of Opinions:
- Unqualified Opinion
- Qualified Opinion
- Adverse Opinion
- Disclaimer of Opinion