[startupcfo]

I’m having trouble wrapping my head around what dictates an unmodified vs disclaimed vs qualified opinion. In different scenarios, I see

A) Lawyers thinking the case is likely to resolve in a settlement vs no clue as to whether a lawsuit would be successful

B) The lawyers are convinced your audit client will lose something, but is unsure of the dollar value

C) The lawyers are confident your audit client will have to pay, but it will be 100% reimbursed by an insurance company.

What are some rules of thumb I can use to remember what kind of opinion it will be, and whether I have to change the opinion, add an emphasis of matter paragraph, or add footnotes?

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[Biff-1955-Tannen]

I feel like possible litigation will not impact whether it is unmodified, disclaimed or qualified. I think the attorneys response is only for the matter of disclosing subsequent events and/or reporting in the financials/footnotes.

Whether the report is unmodified or qualified only pertains to if the financials are materially misstated or not.

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[Author]

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