What phrase typically appears in a qualified opinion section?

In the context of an auditor's report, a qualified opinion arises when the auditor concludes that, except for certain issues, the financial statements present a true and fair view of the entity’s financial position. The phrase that is commonly used to introduce this qualification is "Except for." This phrase indicates that while the financial statements are generally reliable, there are specific areas or disclosures that might not comply with the applicable financial reporting framework.

Inclusion of "Except for" allows the auditor to clearly communicate that, aside from the noted exceptions, the rest of the financial statements can be trusted, thus providing a balanced view of the entity's financial reporting. This wording is crucial, as it delineates the aspects of the financial statements that were not in compliance, enabling users of the report to understand the limitations of the auditor's view.

The other phrases do not have the same established meaning in the context of a qualified opinion. "With favorable conditions" does not convey the necessary professional judgment regarding the financial statements. "In conclusion" is generally more associated with summarizing information rather than addressing specific qualifications in an audit opinion. "Overall assessment" similarly does not reflect the precise nature of a qualified opinion and may imply a more generalized evaluation rather than addressing particular exceptions.