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* Unqualified audit opinion: this is when the auditor concludes that the financial statements present fairly, in all material respects, the financial position of the organisation (also referred to as a “clean” audit). This is the ideal audit outcome.
* Unqualified audit opinion with other matters: this statement is unqualified, but there are matters which raise red flags. If not attended to, these matters would lead to a qualification in future years.
* Qualified audit opinion: the auditor concludes that, except for specifically listed material errors, the financial statements remain a fair reflection of the state of the books. This is not a “clean” audit but with some effort can become an unqualified audit in future.
* Adverse opinion: the auditor disagrees with the representation made by the management in the statements to the extent of confirming that it is not a fair reflection of the financial position. This is not a “clean” audit and indicates that the evidence obtained by the auditors does not support the figures in the statements.
* Disclaimer: where a lack of appropriate audit evidence prevents the auditor from forming an opinion about the correctness of the financial statements. This is the worst type of audit outcome.