Adverse Audit Opinion Law and Legal Definition

Adverse Opinion refers to an professional opinion made by an outside auditor that a company's financial statements as a whole are not in conformity with the generally accepted accounting practices of the United States or do not accurately reflect the company's financial position. The auditor must provide the reasons for the adverse opinion in the audit report. An adverse opinion is rare and usually results when the accountant has not been able to convince the client to amend the financial statements so that they reflect the auditor's estimate about the outcome of future events or that they otherwise adhere to GAAP.