The Auditor is Unable to Complete the Audit Report Due to Absence of Financial Records or Insufficient Cooperation from Management.
There’s 4 Opinions – the Disclaimer is like no Opinion at all.
It would be better for the City to submit clean Financial Statements and get an Opinion than to get a Disclaimer . Trying to hold on to the last forged $50 million with all else considered – isn’t worth loosing the entire Audit.
This is what the City gets for hiring crooks like Mike Busch and Melana Taylor to forge government documents. And ‘Council’s Approval’ only means that Council was fully aware and approved of the forged documents.
Unqualified Opinion
An unqualified opinion is also known as a clean opinion. The auditor reports an unqualified opinion if the financial statements are presumed to be free from material misstatements. In addition, an unqualified opinion is given over the internal controls of an entity if management has claimed responsibility for its establishment and maintenance, and the auditor has performed fieldwork to test its effectiveness.
Qualified Opinion
A qualified opinion is given when a company’s financial records have not been presented in accordance with GAAP. Although the wording of a qualified opinion is very similar to an unqualified opinion, the auditor provides an additional paragraph including exclusions from the cleanliness of the financial statements and points out why the auditor report is not unqualified.
Adverse Opinion
The most unfavorable opinion a business may receive is an adverse opinion. An adverse opinion indicates financial records are not in accordance to GAAP and are grossly misstated. An adverse opinion is an indicator of fraud, and public entities that receive an adverse opinion are forced to correct their financial statements and have the financial statements re-audited. Investors, lenders and other financial institutions do not typically accept financial statements with adverse opinions.
Disclaimer of Opinion
In the event the auditor is unable to complete the audit report due to absence of financial records or insufficient cooperation from management, the auditor issues a disclaimer of opinion. This is an indication that no opinion over the financial statements was able to be determined. A disclaimer of opinion is not an opinion itself.
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