- adverse opinion
- An accounting term used in connection with the issuance of audited financial statements. An adverse opinion states that the entity's financial statements do not present fairly the financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles (GAAP). An explanation of the departure from GAAP must be included in the opinion.+ Adverse opinion:The financial statements are not presented fairly in conformity with GAAP, or do not present fairly the financial position, results of operation, and changes in the financial position of the entity. An adverse opinion is uncommon and generally results when the CPA is unable to convince the client to present the financial statements fairly and in conformity with GAAP.
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.
Look at other dictionaries:
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