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So what does it mean when an entity receives a “unqualified audit opinion"? Here is a exerpt from wikipedia definition:

[The most frequent type of report is referred to as the "Unqualified Opinion", and is regarded by many as the equivalent of a "clean bill of health" to a patient, which has led many to call it the "Clean Opinion".... ]

Translation: Warwick met the acceptable reporting requirements in the preparation of its Financial Statements. Most entities do.

However let's examine the other part of the definition: "but in reality it is not a clean bill of health, because the Auditor can only provide reasonable assurance regarding the Financial Statements, not the health of the company itself,or the integrity of company records not part of the foundation of the Financial Statements".

This means that the "Unqualified Opinion" given to an entity is not based on other important financial matters that are not required to be reported in the Financial Statement. This includes UNFUNDED LIABILITIES related to pension and OPEB not reported.

It also means the entiity could be on the verge of bankruptcy even through the financial report was prepared according to standards.

Here is a link to the Central Falls audit report from 2006. Copy and paste it in your browser. Then turn to page 64 where the auditor gives the city the same "Unqualified Opinion" Warwick just received. .

http://www.centralfallsri.us/wp-content/themes/2012CF/assets/FinancialInfo/2005-2006AuditReport.pdf

From: Mayor touts city's financial position

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