Auditor’s opinion – What it is, definition and concept

The auditor’s opinion is the set of assessments issued by a professional evaluator of organizations or companies. This is formally collected in an audit report.

Included within any evaluation process of companies or institutions, the auditor’s opinion is identified as the technical judgment issued by the latter when expressing their impressions regarding an audit investigation.

An audit report collects these conclusions and forms the auditor’s opinion in a formal way. It is, therefore, the consecutive step to the investigation and development of said evaluated points.

In other words, every auditor undertakes a detailed process by which, first, an explanatory opinion must be formed and based on its observation, in order to subsequently be able to issue it in an orderly fashion.

After any type of audit, the professional auditor issues, by way of conclusion, a technical development in which he presents his assessments.

Types of auditor’s opinion

When carrying out his work, the auditor has several options when it comes to expressing his conclusive point of view after the process:

  • Opinion with favorable result: The auditor expresses that the economic and financial conditions of the company are suitable for its operation. In its auditing work, it has not detected any major infractions or mismatches.
  • Favorable opinion with exceptions: In cases in which the professional has not been able to perform his job in the best way, has lacked information in some aspect or has found exceptions or minor flaws.
  • Opinion with unfavorable result: When infractions, faults or incidents are detected, as well as criminal or fraud behaviors. Also in audits that evaluate performance or inefficient production processes.
  • Audit finally denied: The auditor concludes that it is not possible to issue a valid technical judgment due to lack of relevant information, the impossibility of carrying out its investigation or in very specific economic situations.
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Said final result will be the basis of the pertinent audit report to be developed. It will be made up of the formal justifications for each result.

Alternatively, international standards in the field of auditing regulate these different modalities in order to achieve greater cohesion and uniformity between the different countries.

Main features of the auditor’s opinion

This type of audit deliberation has a series of fundamental characteristics:

  • Adjusted to legislation: The auditor adjusts in his work to the economic regulation of each territory. Your conclusions must also fit into these.
  • Motivation: The issuance or not of a conclusive opinion must be justified with palpable data and demonstrable reasons and adjusted to the investigation.
  • Real and documentary base: Any opinion by the auditor must have documentary support and refer to the reality of the company evaluated.

Understandably, depending on the type of audit we are referring to, the auditor’s methodology will vary. In the same way, the opinion that you have to show and the type of report to present will do it.

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