Unqualified opinion

From Wikicpa

An Unqualified opinion is the form of audit report issued when the examination was adequate in scope and the auditors believe that the financial statements present fairly the financial position and operating results in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

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Sample

Below is an example of the a standard auditor's report with an additional paragraph added to decribe the Associations' basis of accounting.

Board of Directors
Sunset Village Homeowners Association, Inc.
Chicago, IL

We have audited the accompanying statement of assets, liabilities, and members’ equity (cash basis) arising from cash transactions of the Sunset Village Homeowners Association, Inc. (a Corporation) as of December 31, 20XX, and the related statement of revenues collected and expenses paid and changes in members’ equity for the year then ended. These financial statements are the responsibility of the Sunset Village’ Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As described in note 2, these financial statements were prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Sunset Village Homeowners Association as of December 31, 20XX, and the results of its operations for the year then ended on the basis of accounting described in note 2.

XYZ Auditors, LLC

Certified Public Accountants

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