What does a qualified audit opinion mean?

All the Singapore-incorporated businesses (Excelpt Small companies as defined in the act) must hire an auditor within the first three months of the incorporation. An auditor audits the company’s financial accounts, accounting records, and internal management to make sure that everything is under compliance with internal control procedures, and there are no errors in the company’s accounts.

A qualified audit opinion means an audit report after the audit is successfully completed, where some parts are specifically flagged. It is generally given when:

• There is a limitation of scope in the audit
• There is an issue that is either material or of financial consideration
• Management is not correctly following application or adequacy of accounting policies