{"id":2904,"date":"2024-07-19T15:41:20","date_gmt":"2024-07-19T08:41:20","guid":{"rendered":"https:\/\/audithink.com\/?p=2904"},"modified":"2026-10-23T20:24:04","modified_gmt":"2026-10-23T13:24:04","slug":"audit-opinion","status":"publish","type":"post","link":"https:\/\/audithink.com\/en\/blog\/opini-audit\/","title":{"rendered":"Audit Opinion: Definition, 4 Types, Stages, and Examples"},"content":{"rendered":"

An audit opinion is a formal statement issued by an auditor regarding the fairness of the presentation of an entity's financial statements, based on applicable auditing standards.<\/strong> This opinion is the final conclusion of the entire audit process and determines the extent to which the financial reports can be relied upon by stakeholders\u2014from management, investors, regulators, to the public.<\/p>\n\n\n\n

According to the currently applicable Auditing Standards, there are 4 types of audit opinion:<\/strong> unqualified opinion, qualified opinion, adverse opinion, and disclaimer of opinion. Some references mention five \u2014 the explanation for that difference is in the next section.<\/p>\n\n\n\n

In Indonesia, audit opinion refers to Standard Audit (SA)<\/a><\/strong> published by the Indonesian Institute of Certified Public Accountants (IAPI), specifically SA 700\u2013705, as well as the provisions of the Audit Board of the Republic of Indonesia (BPK) for government financial statements. This article discusses the meaning of audit opinion, the number and types of opinion under the standard, the stages of forming it, the factors that influence it, and examples of its application in both the corporate and public sectors.<\/p>\n\n\n\n

How Many Audit Opinions Are There? 4 or 5?<\/h2>\n\n\n\n

This question is often confusing because the answer depends on which framework is used. The two are not contradictory \u2014 they simply belong to different generations of standards.<\/p>\n\n\n\n

Classic framework \u2014 5 types<\/th>Current Auditing Standards \u2014 4 types<\/th><\/tr><\/thead>
1. Unqualified opinion<\/td>1. Unqualified opinion<\/td><\/tr>
2. Unqualified opinion with explanatory language<\/strong><\/td>Not a separate opinion type \u2014 now an emphasis-of-matter paragraph, without changing the unqualified opinion<\/td><\/tr>
3. Qualified opinion<\/td>2. Qualified opinion<\/td><\/tr>
4. Adverse opinion<\/td>3. Adverse opinion<\/td><\/tr>
5. Not giving an opinion<\/td>4. Disclaimer of opinion<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

So the difference lies in just one point. The old framework treated “unqualified opinion with explanatory language”<\/strong> as a stand-alone fourth opinion type. The currently applicable standard no longer treats it as a separate opinion type: when the auditor needs to highlight a matter, they add an emphasis-of-matter paragraph<\/em> to the report, while the opinion remains unqualified.<\/p>\n\n\n\n

In short:<\/strong> following the applicable auditing standard, the answer is 4 types of audit opinions<\/strong>. The number 5 comes from the earlier framework still widely used in course materials, and its extra point is not a new opinion but a variation in how the unqualified opinion is presented.<\/p>\n\n\n\n

What Is the Definition of an Audit Opinion?<\/h2>\n\n\n\n

An audit opinion is the auditor's professional conclusion on the fairness of the financial statements after conducting an audit in accordance with auditing standards. Fairness here does not mean that the statements are completely free from error, but rather that the financial statements are presented fairly in all material respects in accordance with the applicable financial reporting framework (e.g., SAK or SAP).<\/p>\n\n\n\n

According to Public Accountant Professional Standards (SPAP)<\/a><\/strong>, an audit opinion is a statement of opinion submitted by an independent auditor after collecting and evaluating audit evidence<\/a><\/strong> sufficient and appropriate. This opinion is stated in the independent auditor's report accompanying the financial statements.<\/p>\n\n\n\n

It's important to understand that an audit opinion is not a guarantee that a company is financially sound or free from the risk of fraud. The opinion only assesses whether the financial statements fairly reflect the entity's condition and comply with accounting standards.<\/p>\n\n\n\n

What Is the Function of an Audit Opinion?<\/h2>\n\n\n\n

Audit opinions have several main functions for both entities and external parties:<\/p>\n\n\n\n