adverse opinion

Adverse Opinion

A professional opinion made by an auditor indicating that a company's financial statements are misrepresented, misstated, and do not accurately reflect its financial performance and health.

Notes:

This is not a good thing for companies. When auditors have completed their investigation as an adverse opinion it implies wrongdoing.

See also: Auditor's Report, GAAP, Qualified Opinion

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Adverse opinion

An independent auditor's opinion expressing that a firm's financial statements do not reflect the company's position accurately. See also: Qualified opinion.

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adverse opinion

An opinion by a firm's auditors that the firm's financial statements do not accurately present its operating results or financial position. This unusual opinion is a strong warning that investors should be wary. Compare clean opinion. See also qualified opinion, subject to opinion.