Adverse Opinion (Noun)
Meaning
An opinion concerning financial statements (usually based on an audit by a CPA) that the statements as a whole do not present results fairly or are not in conformity with the generally accepted accounting practices of the United States.
Classification
Nouns denoting communicative processes and contents.
Examples
- The auditor issued an adverse opinion on the company's financial statements due to the discovery of material misstatements.
- The accounting firm's adverse opinion on the non-profit organization's financial statements led to a loss of funding from major donors.
- The company's financial statements received an adverse opinion from the CPA firm, which cited inconsistencies in revenue recognition.
- The adverse opinion on the city's financial statements was a major blow to its credit rating and ability to secure loans.
- The auditor's adverse opinion on the company's financial statements was based on the failure to disclose significant related-party transactions.