What is noted in a qualified SOC 1 opinion?

In a qualified SOC 1 opinion, the auditor expresses their opinion with the phrase "except for" specific conditions that have been identified during the audit process. This indicates that while the auditor generally finds the controls in place to be effective, there are particular areas where the controls might not operate effectively, or certain conditions exist that could affect the financial reporting of the user entities.

The use of "except for" explicitly marks the limitations or exceptions to the auditor’s opinion, distinguishing it from an unqualified opinion where there are no reservations about the effectiveness of the controls. This distinction is crucial for stakeholders who rely on the audit results to understand the scope and limitations of the controls being evaluated.

Other choices do not accurately reflect the nature of a qualified opinion. For instance, simply accepting items without qualification would indicate an unqualified opinion, while noting findings as irrelevant does not align with the purpose of a SOC report, which is to provide meaningful information to the users. Including only positive findings entirely contradicts the purpose of a qualified opinion, as it may mislead users about the adequacy of the controls.