Qualified-opinion meaning

An opinion issued by an auditor that expresses reservations about a company’s financial statements. The reasons for a qualified opinion are varied, but whatever the source, a qualified opinion is likely to send shock waves through the ranks of the company’s investors, and result in a significantly lower stock price. Qualified opinions may be based on concerns about inventory issues, a pending lawsuit that could result in a significant judgment that would produce financial strain on the business, or the possibility of a tax liability from a tax shelter or investment.
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