2024 CFA Level I Exam: CFA Study Preparation

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Most auditors' reports are ______.

A. qualified
B. adverse
C. unqualified
D. a disclaimer of opinion

User	Comment
cfstester	Except that if they are qualified, they will likely be fired next year.
Done	Then what is a Qualified opinion?
anricus	you would imagine a qualified opionion is a good one. but in fact an unqualified is the good one! Qualified - auditors disagree with accounting treatment (perhaps on one area) Adverse - accounts are completly useless and wrong Disclaimer - appropriate evidence not in place to form an opinion.
teddajr	Qualified ->Disagreements exist. Unqualified -> In accordance.
kutta2102	The term 'unqualified' should be understood with respect to what the auditor's report is trying to say - we've audited the company's financials and are COMPLETELY on-board with it - no caveats. If the audiotr's report said something like "we are in agreement with the accuracy of financial statements but the management did not take into consideration factors x,y,z...." -now that's a qualified opinion.
assiduous	unqualified = I have an opinion and I do not need to qualify it qualified = I have an opinion BUT I need to qualify it adverse = I have an opinion; the financial statements are useless disclaimer = I DO NOT have an opinion (a disclaimer basically say, "yes, I reviewed the financial statements but I was unable to form an opinion")
kingirm	is it something good ????

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Learning Outcome Statements

describe the importance of regulatory filings, financial statement notes and supplementary information, management's commentary, and audit reports

describe information sources that analysts use in financial statement analysis besides annual and interim financial reports

CFA® 2024 Level I Curriculum, Volume 2, Module 1.