Adverse Opinion -- Statement given by unbiased auditors of a company that present operating conditions and financial status are not correctly exhibited in the firm's financial statements. This is a more severe conclusion than Qualified Opinion, where the auditor gives strictures only with respect to a few matters. Needless to say, investors need to be very careful before purchasing the stock of a company given an adverse opinion.
adverse opinion -- an opinion issued by an independent auditor when the financial statements of a financial institution do not fairly present the institution's financial condition. See qualified opinion.
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