An adverse opinion is issued when the auditor believes

1. the auditor is not independent.
2. some parts of the financial statements are materially misstated or misleading.
3. the overall financial statements are so materially misstated that they do not present fairly the financial position or results of operations and cash flows in conformity with GAAP.
4. the financial statements would be found to be materially misstated if an investigation were performed.