What distinguishes a qualified audit opinion from an unqualified opinion?

A qualified audit opinion indicates that the auditor found some issues or limitations within the financial statements that were reviewed. This means that, while the financial statements are generally presented fairly, there are specific areas where the statements may not conform to generally accepted accounting principles (GAAP) or other reporting frameworks. The auditor provides this opinion to highlight those particular concerns to the users of the financial statements, while still confirming that the majority of the information is reliable.

In contrast, an unqualified opinion is the most favorable type of audit opinion. It signifies that the auditor believes the financial statements present a true and fair view of the company's financial position, without reservation. This type of opinion reflects that the statements comply with GAAP and that the financial statements are accurate in all material respects.

Therefore, the distinction lies in the presence of issues noted in a qualified opinion versus the clean bill of health provided by an unqualified opinion.