What are the 3 ratings an external auditor can give a company and what do they mean?
unqualified qualified adverse
off the top of my head: unqualified: good qualified: kinda bad adverse: very bad
Unqualified (clean opinion) - You bribed the audit company enough to have them say everything is good to go Qualified opinion - You have a few stinky areas that don’t follow GAAP (You should have paid more money) Adverse Opinion - Your financial statements stink like the ethics section of the CFA and do not conform with GAAP (Leave the country)
ahaha … I completely agree with the last part !!
And in reality, anything other than unqualified is poison…