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.


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



Advanced Financial Statement Analysis - Learn what it means to do your homework before investing in a company. Get a deeper understanding of the structure of financial statements and what they tell you about a company's performance and reporting practices.
Related Terms

Auditor's Report

GAAP

Qualified Opinion

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