A qualified opinion is a kind of modification of audit opinion that suggests that the financial statements audited do not give the true and fair view in the matters expressed in the basis for the opinion paragraph. When the financial statements are true and fair in all material respects, there is no qualification in that case.
The qualification of audit opinion may arise based on the misstatement of material items of financial statements or unavailability of sufficient appropriate audit evidence to support a true and fair view of financial statements. In either case, the item or the unavailable evidence should be material in respect of amount or nature in order to have a qualification.
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