Adverse Opinion
/ˈædvɜrs əˈpɪnjən/
Definitions
- (n.) A formal auditor's statement indicating that financial statements do not present a fair and accurate view in accordance with applicable accounting standards.
The auditor issued an adverse opinion due to significant misstatements in the company's financial report.
Forms
- adverse opinion
- adverse opinions
Related terms
See also
Commentary
An adverse opinion is the most negative type of auditor's opinion and usually signals serious financial reporting issues, often influencing stakeholders' decisions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.