Analyzing the Auditor’s Statement: An Unqualified Opinion

Securities regulations require the company’s auditors to provide a report stating whether investors can rely on the information presented. Such reports can take several forms:

In most cases, the auditor will provide an unqualified opinion, essentially saying “yes, investors can rely on the information in this report.” An example can be found in the 20F (the annual report for a foreign company) for Sony. The key line is:

In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, the financial position of Sony Corporation and its subsidiaries (“the Company”) at March 31, 2004 and 2005, and the results of their operations and their cash flows for each of the three years in the period ended March 31, 2005, in conformity with accounting principles generally accepted in the United States of America.

These statements assure investors that they can rely on the financial statements presented.

For more information, see all articles on: Financial Statement Analysis, Fundamental Analysis, Securities Regulation

See also:
  • Analyzing the Auditor’s Statement: Adverse Opinion
  • Analyzing the Auditor’s Statement: The Going Concern Clause
  • Analyzing the Auditor’s Statement: A Qualified Opinion
  • Analyzing the Auditor’s Statement: Disclaimer of Opinion
  • Benefits of a Formal Investment Policy Statement
  • Technical Analysis Explained : The Successful Investor's Guide to Spotting Investment Trends and Turning Points

    The Intelligent Investor: The Classic Text on Value Investing

    Financial Statement Analysis: A Practitioner's Guide, 3rd Edition

    Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)

    One Response to “Analyzing the Auditor’s Statement: An Unqualified Opinion”

    1. Investing World Today » festival of investing - February 28, 2007 Says:

      [...] presents Analyzing the Auditor’s Statement: An Unqualified Opinion posted at Financial [...]

    Leave a Reply

    You must be logged in to post a comment.