An independent auditor's "adverse" opinion on financial statements indicates the auditors have completed their work and are concerned with the "going concern" aspects of the audited entity.

Question

Quizplus · Accepted Answer

An adverse opinion indicates that the financial statements of a company are materially misstated and do not accurately reflect its financial position; it is not specifically related to concerns about the entity's ability to continue as a going concern, which would be highlighted in a separate going concern opinion or note.

An Independent Auditor's "Adverse" Opinion on Financial Statements Indicates the Auditors