What is an Adverse Opinion?

Is issued when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the FS. Misstatements are considered pervasive if in the auditor’s judgement: (a) they are not confined to specific elements, accounts or items of the FS; (b) if so confined they represent or could represent a substantial proportion of the FS; or (c) in relation to disclosures, they are fundamental to users’ understating of the FS.

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