Audits & Opinions

The Basics

The auditing process can be a bit daunting from a distance, but at Amatics, we break down every step of the process so that our clients understand exactly what this “mysterious” process entails.

No assurance process offers a 100% bullet-proof, black-and-white answer about a client’s financials. However, an accounting firm can offer different levels of assurance to third parties requesting them, an audit being the highest and most detailed level of assurance.

After conducting an audit, the auditor certifies that the client’s financial statements meet the requirements of US GAAP and will issue a final opinion.

What kinds of opinions are issued after an audit?

AN UNQUALIFIED OPINION – This is the most common type of opinion, in which the CPA is in agreement with how the company prepared the statements. The auditor is providing reasonable assurance that the financial statements are free of material misstatement.

A QUALIFIED OPINION – This opinion is issued when the auditor has taken exception to certain current period accounting applications or is unable to establish the potential outcome of a material uncertainty.

A DISCLAIMER OPINION – This category of audit report is issued when the auditor permits his or her name to be associated with financial statements that were not examined in accordance with generally accepted auditing standards.

AN ADVERSE OPINION – This is an audit opinion which states that the financial statements do not fairly present the financial position, results of operations, and changes in financial position, in conformity with generally accepted accounting principles.

Have more questions on the auditing process? Book a consultation with an Amatics Associate!