Except-for opinion definition
/What is an Except-for Opinion?
An except-for opinion is rendered by an external auditor when unable to audit parts of a client's operations. The issue arises when management imposes restrictions or when other conditions occur that make it impossible to engage in certain auditing procedures . Under these circumstances, the auditor typically renders an opinion "except for" the conditions stated in a following paragraph of the opinion. Organizations try to avoid an except-for opinion, since it can be an indicator to outsiders that there are problems with their financial statements.
An except-for opinion is not as bad as an adverse opinion, where the auditor states that the client’s financial statements are not in conformity with generally accepted accounting principles. An except-for opinion is also not as bad as a disclaimer of opinion, in which the auditor cannot form an opinion regarding the fairness of the client’s financial statements.
