The COA also gave an adverse opinion
to the Department of Trade and Industry (DTI) in four years- 2008, 2010, 2011 and 2012.
This study is unique in that it focuses on firms that received adverse opinions
in one year, followed by an unqualified opinion in the next, isolating the sample from firms with longstanding or endemic internal control weaknesses.
For the first time, the court does not give an adverse opinion
, but a qualified one, since the estimated level of errors for rural development is lower than in previous years, but still over 2%.
Since the disclaimer and adverse opinions
are both serious in nature and less frequent, we merge them into one category.
But no councils were given adverse opinions
- the most serious audit criticism - compared with seven authorities last year.
Five authorities (20 per cent) got "qualified" opinions and none received adverse opinions
For example, if certain circumstances are present, an auditor can issue a standard report with additional explanatory language, qualified or adverse opinions
, or a disclaimer of opinion.
The PricewaterhouseCoopers audits contained no adverse opinions
or disclaimers of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles; there were no disagreements on any matters of accounting principles or practices, consolidated financial statement disclosure, or auditing scope or procedure, which, if not resolved to the satisfaction of PricewaterhouseCoopers, would have caused PricewaterhouseCoopers to make reference to the matter in their reports on the financial statements.
In line with this, one of the suggestions given to the party is to have dedicated team to tackle social media operations in case of crisis so that adverse opinions
do not affect the party.
The MECs heard that something had to be done about stagnant municipalities who consecutively get qualified audits, disclaimers or adverse opinions
with no improvement .
reports that in 2005, the first year of SOX section 404 audits, 16% of companies received adverse opinions
from independent auditors.
Turley warned of the potential for many more material weaknesses to be reported and adverse opinions
issued than many observers may expect, and expressed concern about the potential public and capital market reaction, should this occur.
Auditors may also render qualified opinions, adverse opinions
, and disclaimers.
The Big 4 accounting firm that has issued the largest number of adverse opinions
is PricewaterhouseCoopers, which failed 9.
Frequently, the Commissioner will continue to refine arguments and relitigate similar issues in later cases in attempts to overturn adverse opinions