adverse opinion

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Related to adverse opinion: Disclaimer of opinion

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.

Adverse Opinion

A statement by an auditor that a company's financial statements are inaccurate, whether accidentally or deliberately. An adverse opinion usually follows a report from an internal audit or external audit. Auditors attach adverse opinions to reports if the company's financial statements diverge a great deal from the Generally Accepted Accounting Principles.

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.
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Given that a material weakness is generally disclosed by management prior to the auditor issuing an adverse opinion on internal control, one would not expect the stock market to be "surprised" by such an adverse opinion.
Whether a qualified or adverse opinion is rendered is subject to the judgment of the auditor, who will consider matters such as the nature of the GAAP departure and the magnitude of the amounts involved.
An adverse opinion on the assessment of the effectiveness of ICOFR if there are one or more material weaknesses in ICOFR; or
For example, if the auditor uncovers a previously unnoticed material misstatement of credit sales, then the auditor could easily conclude that controls over credit sales are ineffective, and decide that a material weakness exists requiring an adverse opinion on internal control.
Auditing Services Unit, On A Timely Basis, Their Reasons For Qualifying The Opinion, Disclaiming An Opinion Or Rendering An Adverse Opinion.
The Auditors opinion shall be unmodified unless the Auditors furnish to the Local Government, on a timely basis, their reasons for modifying the opinion, disclaiming an opinion, or rendering an adverse opinion.
However, the State Board of Accountancy alleged that because of the very material departures from GAAP regarding the disclosure of related parties and the recognition of losses, the firm should have issued either a qualified or an adverse opinion on the 1991 to 1994 statements and an adverse opinion on the 1995 to 1997 financial statements.
The Auditor%s opinion shall be unqualified unless the Auditor furnished the County, on a timely basis, the reasons for qualifying the opinion, disclaiming an opinion, or rendering an adverse opinion.
Therefore, if the auditor has issued an adverse opinion or disclaimed an opinion on the statements taken as a whole, the auditor should carefully consider whether reporting on the specified element included in such statement is tantamount to a piecemeal opinion.