IS IT TRUEÂ the City County Observer has located an easy to understand definition of what the 4 kinds of opinions that audit teams issue at the conclusion of the audit process?…these things are as self explanatory as they can be and we will let this stand on it’s own as we await the “official” release of the City of Evansville and the Water and Sewer Utility audits for 2012?
Unqualified Opinion
Often called a clean opinion, an unqualified opinion is an audit report that is issued when an auditor determines that each of the financial records provided by the small business is free of any misrepresentations. In addition, an unqualified opinion indicates that the financial records have been maintained in accordance with the standards known as Generally Accepted Accounting Principles (GAAP). This is the best type of report a business can receive.
Typically, an unqualified report consists of a title that includes the word “independent.†This is done to illustrate that it was prepared by an unbiased third party. The title is followed by the main body. Made up of three paragraphs, the main body highlights the responsibilities of the auditor, the purpose of the audit and the auditor’s findings. The auditor signs and dates the document, including his address.
Qualified Opinion
In situations when a company’s financial records have not been maintained in accordance with GAAP but no misrepresentations are identified, an auditor will issue a qualified opinion. The writing of a qualified opinion is extremely similar to that of an unqualified opinion. A qualified opinion, however, will include an additional paragraph that highlights the reason why the audit report is not unqualified.
Adverse Opinion
The worst type of financial report that can be issued to a business is an adverse opinion. This indicates that the firm’s financial records do not conform to GAAP. In addition, the financial records provided by the business have been grossly misrepresented. Although this may occur by error, it is often an indication of fraud. When this type of report is issued, a company must correct its financial statement and have it re-audited, as investors, lenders and other requesting parties will generally not accept it.
Disclaimer of Opinion
On some occasions, an auditor is unable to complete an accurate audit report. This may occur for a variety of reasons, such as an absence of appropriate financial records. When this happens, the auditor issues a disclaimer of opinion, stating that an opinion of the firm’s financial status could not be determined.
If, in fact, the City and Utilities receive ADVERSE OPINIONS, as you suggested this morning based on a highly placed source, then that is incredibly bad news for the City.
“Although this may occur by error, it is often an indication of fraud”.
WOW, that sentence says it all.
If the Adverse opinions actually occur, Heads Need to Roll ! Will the City Council just take a hands off approach, since it’s not politically wise to mess with a former Mayor ??
Stay Tuned ! ‘AS THE CITY TURNS’
How about:
As the city burns!
The past two administrations appears to be the new “Shermans” as they destroy the city. (I must be seeing too many civil war shows)
If such a thing does happen, the Mayor should fire him before the City Council even meets, about five minutes after the opinion is received. It’s one of those “Serves at the Pleasure of the Mayor” positions, so the Mayor has the power to do it without the Council.
I agree. That is the only appropriate response.
Fraud and deception in our city Government? Why, I never…
/sarcasm off.
Hang’em High.
these sobs need to be tarred and feathered and penniless
This time around the audit will cover time during the current admin so there should no longer be any more finger pointing at anyone other than the current admin. And this should most definitely be an issue in next years election.
Here are some phone numbers that interested citizens may want to call:
IN State Board of Accounts 317-232-2513
IN Attorney General 317-232-6201
Governor of IN 317-232-4567
As every consecutive dawn breaks, another tidbit of Evansville stench finds flight on the morning breeze.
Grateful, aye how grateful I feel that on May the 15th, 2014 we close on a beautiful house in Newburgh and bid a fair adieu as the socio-politico’s in Evansville, Indiana oh so gently depress the lever even further, leading to the great clockwise swirl.
Congratulations on the new home, but don’t expect better of Warrick Co. politics.
Exactly, you typed a mouthful!
Evansville gets much of what Warrick County runs out and vise-verse.
Just politics as usually these days.
CCO:
Does your source for the ‘Adverse Opinions’ also have a timeframe for State actually publishing the ACTUAL auditor’s report ?
If the outcome (Adverse) comes to pass, then any delay in releasing that information to the Public should be scrutinized.
We do not have any info on when the report will be posted. There should be a law regarding how long this public document can be withheld.
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