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Simple English definitions for legal terms
audit opinion
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A quick definition of audit opinion:
An audit opinion is a statement made by a certified public accountant about a company's financial statements. It tells us if the statements are accurate and follow the rules. It's like a report card for a company's finances. If the opinion is good, it means the company is doing well. If it's bad, it means there might be problems.A more thorough explanation:
Definition: An audit opinion is a certified public accountant's opinion regarding the audited financial statements of an entity.
Example: A company hires a certified public accountant to review their financial statements. The accountant then provides an audit opinion stating whether the financial statements are accurate and comply with generally accepted accounting principles.
Explanation: An audit opinion is a professional assessment of a company's financial statements. The opinion is based on the accountant's review of the company's financial records and their compliance with accounting standards. The opinion can be unqualified, meaning the financial statements are accurate and comply with accounting standards, or qualified, meaning there are issues with the financial statements that need to be addressed.