adverse opinion investment & finance definition
An
opinion by an independent auditor that a company’s financial statements are not
accurate. An adverse opinion is worse than a qualified
opinion, which says that only some areas of the financial reports are
problematic. Adverse opinions occur infrequently and typically lead to
investors selling their shares in the company.
See adverse opinion in Wall Street Words
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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