Accountant's Opinion

A statement signed by an independent accountant outlining his or her opinion regarding the quality of information contained in a company's financial reports and records.

An accountant's opinion statement can either be qualified or unqualified. When the opinion is qualified, the accountant is questioning the accounting principles and/or scope of the information provided. An unqualified opinion is given when the accountant sees that the given information in the financial statements is sound. In other words, an unqualified opinion is desirable whereas a qualified opinion is not.

The subject of accountant independence became an important issue in the wake of the demise of such corporate giants as Enron and WorldCom in the early 2000's. Because Enron and WorldCom were large companies, they represented a substantial portion of their accounting firms' revenues. This lead to the speculation that the accountants could not provide truly independent opinions for these giant companies, who provided the accountants with extremely lucrative contracts but also might have terminated these contracts if undesirable accounting opinions were issued.


Investment dictionary. . 2012.

Look at other dictionaries:

  • accountant's opinion — A signed statement from an independent public accountant after examination of a firm s records and accounts. The opinion may be unqualified or qualified. Bloomberg Financial Dictionary See: qualified opinion. Bloomberg Financial Dictionary …   Financial and business terms

  • accountant’s opinion — /əˌkaυntənts ə pɪnjən/ noun a report of the audit of a company’s books, carried out by a certified public accountant …   Dictionary of banking and finance

  • opinion letter — Letter issued by a certified public accountant to accompany financial statements. The opinion letter has two parts. One describes the scope of the accountant s work in the preparation and testing, if any, related to the preparation of the… …   Financial and business terms

  • Accountant's Letter — A letter that usually precedes a financial report. An accountant s letter is produced by a company s independent auditors. It summarizes the scope of the accountant s audit and its results in very general terms. The term is frequently used… …   Investment dictionary

  • opinion — A document prepared by an attorney for his client, embodying his understanding of the law as applicable to a state of facts submitted to him for that purpose; e.g. an opinion of an attorney as to the marketability of a land title as determined… …   Black's law dictionary

  • accountant’s letter — Fin a written statement by an independent accountant that precedes a financial report, describing the scope of the report and giving an opinion on its validity …   The ultimate business dictionary

  • Auditor's Opinion — A certification that accompanies financial statements and is provided by the independent accountants who audit a company s books and records and help produce the financial statements. The auditor s opinion will set out the scope of the audit, the …   Investment dictionary

  • Unaudited Opinion — An opinion that can be offered by a Certified Public Accountant before he or she audits an organization s books. This is known as an unaudited opinion, and it will reflect the opinion of the accountant or CPA concerning the organizations s books… …   Investment dictionary

  • Eugene Morse (accountant) — Eugene Morse is the internal auditor and whistleblower who uncovered and exposed massive accounting fraud at WorldCom in 2002 [cite web | title= OPINION ORDER in re: WORLDCOM, INC. SECURITIESLITIGATION 02 Civ. 3288 (DLC) Denise Cote, United… …   Wikipedia

  • qualified opinion — Term used to describe the opinion letter accompanying audited financial statements in which the CPA reports the same information as in the unqualified opinion with one or more additions. The additional information describes either (1) one or more …   Financial and business terms


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