A matter of opinion – What audit opinion lingo suggests about your borrower

Description

Abstract: Audit opinion letters present clues to the worthiness of potential borrowers. The type of opinion expressed — unqualified, qualified, adverse or disclaimer — may have serious implications about the audit’s compliance with accounting rules and the borrower’s ability to operate as a going concern. It’s important for lenders to know what’s in the audit opinion letter, and how to regard each of the four different kinds of opinions.