Qualified Opinion

A statement written upon the front page of an audit done by a professional auditor. A qualified opinion suggests that the information provided was limited in scope and/or the company being audited has not maintained GAAP accounting principles.

Investopedia Says:
Contrary to its connotation, a qualified opinion is not a good thing. Auditors that deem audits as qualified opinions are advising whomever is reading the document that the information within the audit is not complete or that the accounting methods used by the company do not follow GAAP.

Related Links:
"One-time charges" and "investment gains" are two strategies companies can use to distort their numbers. Detecting Two Tricks Of The Trade
This metric is an attempt to counteract creative accounting, but it poses its own set of challenges. Core Earnings Measure Up

Language in the auditor's opinion accompanying financial statements that calls attention to limitations of the audit or exceptions the auditor takes to items in the statements. Typical reasons for qualified opinions: pending lawsuit that, if lost, would materially affect the financial condition of the company; indeterminable tax liability relating to an unusual transaction; inability to confirm a portion of the inventory because of inaccessible location. See also Accountant's Opinion.

One issued by the auditor because of uncertainties about future events that cannot be resolved or the effect of which cannot be estimated or reasonably provided for at the time the opinion is rendered. An uncertainty, such as one arising from operating losses or significant financial weakness, that calls into question the going-concern assumption requires a subject to qualification. A subject to opinion may also arise from uncertainty due to tax matters and possible expropriations of property by a foreign government. See also Except for Opinion.