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Types of audit reports issued for financial statement audits

What types of audit reports are issued for financial statement audits?
Are all of those types of reports likely to be issued for audits of public companies?
If not, which ones are not likely used and why?

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What types of audit reports are issued for financial statement audits?

There are four types of audit reports with opinions generally issued:

1. Unqualified opinion
2. Qualified opinion
3. Adverse opinion
4. Disclaimer of opinion

These are the reports issued for an entity taken as a whole.

The definition of the types of opinions, as clearly stated:

Unqualified opinion: The unqualified opinion has no reservations concerning the financial statements. This is also known as a clean opinion meaning that the financial statements appear to be presented fairly.

Qualified opinion: This means that the auditor has taken exception to certain current-period accounting applications or is unable to establish the potential outcome of a ...

Solution Summary

The 445 word cited solution explains the four types of audit reports and the situations in which they are used.

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