A "qualified" opinion from an auditor is preferred to an "unqualified" opinion in a firm's annual report.

Question

Quizplus · Accepted Answer

This statement is incorrect. A "qualified" opinion implies that there are issues with the financial statements and may indicate a lack of compliance with accounting standards or regulations. An "unqualified" opinion is a positive statement from the auditor, indicating that the financial statements are accurate and comply with accounting standards. Therefore, an unqualified opinion is preferred over a qualified opinion.

A "Qualified" Opinion from an Auditor Is Preferred to an "Unqualified