auditor's judgment that he or she has no reservation as to the fairness of presentation of a company's financial statements and their conformity with GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP); also termed clean opinion. In the auditor's opinion, the company has presented fairly its financial position, results of operations, and changes in cash flows. However, if there is inconsistency in application of GAAP, there should be
disclosure in the auditor's report.