Going concern opinion
Financial Accounting glossary · Financial Accounting
Definition
Auditor's modification of report when substantial doubt exists about an entity's ability to continue operating for one year beyond statement issuance.
Going concern opinion in plain English
A going concern opinion is a formal warning flag raised by an auditor — the independent expert who checks a company's books. When they have serious doubt the business can survive the next year after its financial statements come out, they add a note to their report saying so. Think of it like a home inspector who signs off on a house but adds, "Heads up — the foundation may not hold much longer"; the numbers might look fine today, but this is the professional telling investors to be careful. It's one of the loudest signals in accounting that a company could be headed for real trouble.
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