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Meaning And Interpretation of Unqualified Opinion of External Auditors: Perceptions of External Auditors and Users of Audited Financial Statements in Nigeria


  • Obiamaka NWOBU

    (Covenant University Auditing, Gender, Corporate Sustainability and Accountability, Nigeria)


This research examined the meaning and interpretation given to unqualified opinion of an external auditor. This main objective was deemed important because of the expectation gap theory that proposes that there are different expectations of the external auditor and users of audited financial reports pertaining to the extent of dependence on the auditors’ opinion. Questionnaire was designed to collect data from external auditors, accountants in business, lender employees and investors. The study found significant differences in the perception of the respondents pertaining to meanings associated with unqualified opinion of external auditors. There were significant differences in the opinion of respondents that such reports can be relied upon to make investment decisions, means that the financial statement is not free from fraud, shows that the financial statements show a true and fair view of the state of affairs, the company is a safe investment haven and the financial statements are free from material misstatements respectively. These findings have implications for the accounting profession. There is need for more investor education both on the part of the accounting profession and business organizations. We recommend that external auditors explain the extent to which audit reports can be relied upon by users of such reports in the financial statements. This should reduce the gap between the expectations of the users and external auditors.

Suggested Citation

  • Obiamaka NWOBU, 2015. "Meaning And Interpretation of Unqualified Opinion of External Auditors: Perceptions of External Auditors and Users of Audited Financial Statements in Nigeria," The Journal of Accounting and Management, Danubius University of Galati, issue 3, pages 5-13, December.
  • Handle: RePEc:dug:jaccma:y:2015:i:3:p:5-13

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