Audit Qualifications

Auditors can qualify their audit, if they have any concerns. There are five levels of qualification, with five being the severest and most alarming. Please note that levels four and five do impact upon the UK Data Ltd risk score. See the Five Levels Of Audit Qualification for more.

The Five Levels Of Audit Qualification

Level One - "Although the Auditors have not qualified their opinion on the accounts for DD/MM/YY, it should be noted that they may have drawn attention to certain matters. Such matters may impact upon aspects of the financial results."

Level Two - "The Auditors have qualified their opinion on the accounts for DD/MM/YY. The qualification relates to scope limitation, which may include valuation of stock. Such matters may impact upon aspects of the financial results."

Level Three - "The Auditors have qualified their opinion on the accounts for DD/MM/YY. The qualification relates to uncertainty or disagreement of a material but not of a fundamental nature, or to items which effect the profit and loss account only. Such matters may impact upon aspects of the financial results."

Level Four - "The Auditors have either qualified their opinion on the accounts for DD/MM/YY or emphasised a matter of fundamental uncertainty. The qualification/matter specifically relates to the going concern concept, which has only been adopted assuming certain parties continue their financial support."

Level Five - "The Auditors have qualified their opinion on the accounts for DD/MM/YY. The qualification relates to items of uncertainty or disagreement of a fundamental nature or is a multiple qualification. Such matters will impact upon aspects of the financial results."