Unmodified vs Unqualified

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    Topic
  • March 6, 2018 at 12:23 am #1725574
    Anonymous
    Inactive

    What is the difference between unmodified and unqualified opinions? and Qualified vs Modified.. Does it have to do with issuer or nonissuer?

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  • March 6, 2018 at 8:31 am #1725736
    kmgentil
    Participant

    unmodified – Everything is good for a non-issuer (private company)
    unqualified – Everything is good for an issuer (public company)
    Modified opinion – A way of saying that the opinion is not all good.
    Qualified (for scope limitation) – the opinion has been modified because of a lack of evidence that is somewhat material to the financials
    Qualified (for GAAP reasons) – the opinion is modified because something is not conforming with GAAP which is somewhat material to the financials
    Disclaimer of opinion – the opinion has been modified because of a lack of evidence that is very material to the financials
    Adverse opinion – the opinion is modified because something is not conforming with GAAP which is very material to the financials

    March 6, 2018 at 8:34 am #1725739
    Anonymous
    Inactive

    @kmgentil so in that case, qualified (for scope lijmitations) and (for GAAP reasons) can be expressed for both issuers and non issuers?

    March 6, 2018 at 9:10 am #1725755
    TCav12579
    Participant

    ^ yes, the only difference in names is the unmodified/unqualified as described above… after that the types of opinions are interchangeable between issuer/nonissuer

    March 6, 2018 at 9:51 am #1725767
    Recked
    Participant

    Word to the wise, don't get caught up on the PCAOB/Issuer vs non-issuer on the exam.
    I believe these words are used interchangeably for exam purposes and I think those questions are what lead to me having a sub-90 score.

    Just use common sense and don't get sucked into thinking UnQualified is for PCAOB only.

    March 6, 2018 at 12:01 pm #1725908
    jeff
    Keymaster

    August 9, 2018 at 8:47 am #1916779
    Iceman
    Participant

    “Word to the wise, don't get caught up on the PCAOB/Issuer vs non-issuer on the exam.
    I believe these words are used interchangeably for exam purposes and I think those questions are what lead to me having a sub-90 score.

    Just use common sense and don't get sucked into thinking UnQualified is for PCAOB only.”

    Really? Because Wiley videos made a big deal about the change in terminology stemming from the clarified standards vs what the words used to mean years ago…

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