Before we explain the difference between qualified audit opinion and unqualified audit opinion, we should start with the meaning of audit opinion, why do auditor express the opinion and how seriousness of each opinion.

The Audit opinion is basically the statement that issued or express by independent auditors based on result found as the result of applying many audit methodology and procedures. Those including understanding and assess internal control over financial reporting.

Review management’s integrity is also part of the procedure to collect evidence. And the most important thing is the result from performing the substantive test or we can call detail testing.

There are many different of opinions ranging from expressing that the financial statements are true and fair view to disclaiming that they even can’t express their opinion as to the result of can’t obtain information.

There are two big auditor opinions that mention by ISA 700 and ISA 705. They are qualified and unqualified.

For unqualified opinion, the audit report is dealing ISA 700 and it is for financial statements that have no material misstatements.

That means the financial statements are free from material misstatements. It is a clean audit report.

For a qualified opinion, it is a sub of the modified audit opinion, where auditor issued this opinion for the financial statements that do not present true and fair view in all material respect.

That means at least accounts balance in the balance sheet or accounting transactions in the income statement are materiality misstated.

But, the misstated accounts balance or transactions are affected only themselves. They are not affected to the whole to financial statements.