Adverse Opinion

An adverse opinion refers to a negative assessment or judgment expressed by an independent auditor regarding the financial statements or internal controls of a bank. It is an opinion that indicates a significant deviation or non-compliance with accounting principles, regulations, or standards. When an adverse opinion is issued, it suggests that the auditor has identified material misstatements, irregularities, or deficiencies that affect the accuracy, reliability, or fairness of the bank's financial reporting. This can be due to factors such as inadequate documentation, improper accounting practices, non-compliance with regulations, or significant weaknesses in internal controls.