Legal Definitions - adverse opinion

An adverse opinion is a statement made by an outside auditor that a company's financial statements do not follow generally accepted accounting principles or do not accurately show the company's financial position. This means that the auditor does not agree with the way the company has presented its financial information.

For example, if a company reports that it has made a profit, but the auditor finds that the company has actually lost money, the auditor may give an adverse opinion. This opinion is important because it can affect the company's reputation and ability to get loans or investors.