- Unqualified Opinion: This is the most common type of audit opinion you'll see with a public company. It essentially says that the company is fairly reporting its financial position to us. An unqualified opinion is what we ideally want to see.
- Qualified Opinion: This type of opinion means that with the exception of one or two irregularities, the financial statements of the company seem to be all right. The reasons for the qualified opinion will be explained in the audit report.
- Adverse Opinion: If you're looking at a company with an adverse audit opinion, be afraid. With an adverse opinion, the financial statements provided by the company are materially misstated and aren't a fair representation of the company's operations.
In our opinion,
management's assessment that Google Inc. maintained effective internal control over financial reporting as of December 31, 2006, is fairly stated, in all material respects, based on the COSO criteria. Also, in our opinion, Google Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2006, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the accompanying consolidated balance sheets of Google Inc. as of December 31, 2005 and 2006, and the related consolidated statements of income, redeemable convertible preferred stock warrant and stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2006, and our report dated February 27, 2007, expressed an unqualified opinion thereon. -- Ernst & Young