qualified opinion

Definition

An auditor's statement that financial statements are fairly presented except for specific issues, essentially saying 'mostly good but we have concerns.' It's the accounting equivalent of 'we need to talk.'

Example Usage

The auditors issued a qualified opinion due to uncertainty about the collectability of certain receivables, which is never a good sign for investors.

Origin

Auditing standards terminology from early 20th century public accounting development

Fun Fact

A qualified opinion is bad, but there's worse—a disclaimer of opinion means the auditors can't even express an opinion, and an adverse opinion means they think the statements are materially wrong.

Source: Public accounting and auditing standards terminology

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