An auditor after doing his or her work gives report so that the result of audit can be known to internal as well as external parties. When you hear for the first time Qualified and Unqualified audit report (without knowing the meaning) which the auditor give to the company’s and someone ask what is good between the two of them, then majority of people tend to think qualified report is good which is not the case, let’s look at both them in order to know the reason for it.
While qualified audit report by auditor means that there are some problems associated with the books of accounts and company has deviated from generally accepted accounting principles. While unqualified audit report means that all financial statements have been prepared in accordance with generally accepted accounting principles. However one should not rely solely on this when taking a decision as fraud happens even when a company has gotten unqualified audit report from the auditor.