Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Adverse Opinion

What it is:

An adverse opinion refers to the conclusion by an auditor that a company's financial statements inaccurately characterize the company's financial standing.

How it works (Example):

An adverse opinion is an internal or independent auditor's official written statement of no-confidence in a company's financial statements insofar as it reflects the company's true financial status and adherence to generally accepted accounting principles (GAAP) and disclosure of information.

Why it Matters:

The issuance of an adverse opinion can have serious repercussions for a company as far as its reputation and valuation in the market