Guest JB2 Posted February 1, 1999 Posted February 1, 1999 On line 26b of 5500, filer must identify the type of opinion the plan uses (qualified, qualified / disclaimer...). However, the instructions and 5500 Preparers Manual do not really explain what the different types are. Does anyone have a good explanation of the differences between them?
Guest Beavis Posted February 1, 1999 Posted February 1, 1999 I'll give you a very quick rundown...if you have an auditing textbook or some literature form the AICPA, you can check my math. Unqualified - this is what every employer wants. Essentially no material problems found. Qualified/Disclaim per DOL 29 CFR...-Basically means that they engaged in a limited scope audit. The auditor is relying on another auditor's opinion for a bank or insurance company or other such entity. They are not expressing an opinion on that piece of the puzzle. Qualified/Disclaimer- a qualified opinion means that the auditor found something bad. Usually the audit report will say something like "everything is ok except for this, this and that". A disclaimer means that the auditor is not expressing an opinion at all. Maybe they were not given enough data to draw a conclusion, or something along those lines. Adverse-This one is bad news. Essentially the auditor is saying that the financial statements, as presented, are misleading. There would have to be some serious errors and irregularities for an auditor to issue an adverse opinion. Hope that helps.
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