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An unaudited opinion is a financial evaluation by a CPA based on general assumptions, not a comprehensive examination of all financial records. It can provide general recommendations for a company, but it does not carry the same weight as an audit. It is a common service offered by accounting firms and can be requested for specific questions about a company’s finances.
Unaudited opinions are evaluations by financial experts, such as a certified public accountant. However, these assessments are not the result of a comprehensive examination of all relevant financial records associated with a company or organization. In general, the CPA will consider broad information about the financial state of the entity and will base its opinion on those general assumptions. An unaudited opinion is not considered a financial tool to be used in place of an audit, but rather a great way to get some general recommendations from the CPA.
Because an unaudited opinion is not prepared from an intensive evaluation of the organization’s finances, there is often some variation in how CPAs will render their opinion. Some financial professionals may respond only after doing a cursory review of the entity’s records, while others may simply ask a series of questions and follow the answers provided. An unaudited opinion can be very broad in terms of the comments contained in the response, or they can be very detailed. In all situations, an unaudited opinion is not meant to carry the same weight as an audit.
A company may choose to request an unaudited opinion for a number of reasons. If there are specific questions about an aspect of the company’s finances, a CPA can be consulted for some general recommendations. This can include some ideas about where to cut costs in one area to fund growth in a different area, or simply ways to streamline expenses to increase the bottom line. Because an unaudited opinion does not require as much time and manpower as a full audit, it is generally a response in a relatively short period of time.
The unaudited opinion is a common service offered by many accounting firms and certified public accountants who contract with companies to perform audits. Often an organization will choose to contract with the same company for both formal audits and unaudited opinions. This may be a smart approach, as the accountant who has audited the company in the past will be in a better position to render an informed, unaudited opinion.
Smart Asset.
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