Audit Reporting for Going-Concern Uncertainty: A Research Synthesis

Carson, Elizabeth; Fargher, Neil; Geiger, Marshall A.; Lennox, Clive S.; Raghunandan, K.; Willekens, Marleen

doi:10.2308/ajpt-50324

Cited by 273 publications

(257 citation statements)

References 120 publications

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“…The literature reviewed by us and by other authors (Carson et al, 2012) shows the need for research into the content of audit reports in order to study the evolution and effects of the current financial crisis. In addition, the existing studies are based on data from firms listed on the stock exchanges or on data contained in databases such as Compustat or CRSP (DeFond, Raghunandan, & Subramanyam, 2002;Feldmann & Read, 2010;Kaplan & Williams, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

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Audit reporting for going concern in Spain during the global financial crisis

Mareque

López-Corrales

Pedrosa

2017

Economic Research-Ekonomska Istraživanja

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The current world financial crisis is causing real difficulties in the operation of firms and has generated renewed interest in audit reports. This study aims to analyse the impact of the financial crisis on the audit reports issued by auditors. We focus especially on those reports that contain questions relating to going concern situations. The sample analysed is formed by 2935 audit reports of unlisted Spanish firms for the years [2007][2008][2009][2010]. From the results obtained we can affirm that the crisis being suffered by Spanish firms has not gone unnoticed by audit professionals. Our research reveals that as the crisis in Spain has worsened, the proportion of reports that include references to going concern situations has increased in comparison with 2007, when the financial crisis had not become manifest in Spain. The sectors of the Spanish economy most affected by the crisis are real estate and construction. Taking into account whether the audit firm issuing the report is Big-4 or Non-Big-4, no significant differences can be appreciated in the percentage of reports issued with going concern qualifications before the start of the crisis (2007) and during the crisis (2008)(2009)(2010).

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Section: Literature Reviewmentioning

confidence: 99%

“…A recent review by Carson et al (2012) provides a synthesis of the existing academic literature on the presentation of reports containing problems of continuity. This review includes a series of studies in different countries relating to the analysis of audit reports in the first years of the financial crisis.…”

Section: Literature Reviewmentioning

confidence: 99%

Audit reporting for going concern in Spain during the global financial crisis

Mareque

López-Corrales

Pedrosa

2017

Economic Research-Ekonomska Istraživanja

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“…(Carson, Fargher, Geiger, Lennox, Raghunandan & Willekens 2013) Tilintarkastajan arvio, joka koskee johdon kannanottoa toiminnan jatkuvuudesta Toiminnan jatkuvuutta koskevien raporttien täsmällisyys Tekijät, jotka vaikuttavat tilintarkastajan raportointitoimintaan jatkuvuuden oletuksesta: tilintarkastaja tilintarkastusasiakas tilintarkastaja-tilintarkastusasiakas-suhde ympäristö Toiminnan jatkuvuutta koskevien raporttien seurausvaikutukset…”

Section: Aiempi Tutkimusunclassified

Näkökulmia tilintarkastukseen ja arviointiin

Leponiemi¹,

Ruohonen²,

Wacker³

et al. 2017

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“…Firm life cycle could also play an important role in their functioning. Extant research in the auditing literature has for instance examined the issuance of going-concern opinions (GCOs) to audit clients and the error rates in these GCOs (Carson, Fargher, Geiger, Lennox, Raghunandan, and Willekens 2013). 52 Based on their synthesis of auditing research on GCOs, Carson et al (2013) indicate that 80-90 percent of firms that receive a GCO have been found to remain in business (i.e., a Type I error).…”

Section: Limitations and Future Researchmentioning

confidence: 99%

“…Extant research in the auditing literature has for instance examined the issuance of going-concern opinions (GCOs) to audit clients and the error rates in these GCOs (Carson, Fargher, Geiger, Lennox, Raghunandan, and Willekens 2013). 52 Based on their synthesis of auditing research on GCOs, Carson et al (2013) indicate that 80-90 percent of firms that receive a GCO have been found to remain in business (i.e., a Type I error). If auditors do not fully understand where a firm stands in its life cycle, they may be more likely to falsely issue a GCO for earlystage firms based on their relatively weak operating performance despite the future growth potential of these firms.…”

Section: Limitations and Future Researchmentioning

confidence: 99%

The role of firm life cycle in the functioning of capital markets

Hamers

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ACKNOWLEDGEMENTS Veni, vidi, sed magnum erat tempus quo dissertationem finivi.When I decided to embark on this journey, a simple yet -as quickly turned out -naïve and overconfident extrapolation of the time I spent on writing my Master's thesis suggested that it would be possible to finish my PhD within one and a half years. What followed was a threeyear adventure with both ups and downs, great and insightful learning experiences at both the academic and the personal level, and many memorable and enjoyable moments. Most importantly, however, it was the company and support of many unique people that made this journey unforgettable. Some of them have already accompanied me for a longer period of time (or even for my entire life so far); some of them I only met at the beginning of this journey; some of them have crossed my path while I was on my way and either walked along or decided -expectedly or unexpectedly -to choose a different path instead; but all of them have helped me -implicitly or explicitly -to reach the point where I stand today. As such, I am grateful to each and every one of them.First and foremost, I would like to express my eternal gratitude towards my daily supervisors (and co-promotors), Annelies Renders and Patrick Vorst. Annelies, whereas many people are fans of, for instance, pop artists or movie actors/actresses, I immediately became a fan of you when you were my tutor in International Financial Accounting. I have always been impressed by your clear and easy-to-understand explanations and your enthusiasm was -and still is -contagious. My dissertation has benefited immensely from your constant support, guidance and genuine interest -not only in my research but also in me as a person. From the moment we first met, you have been my leading example of how a teacher and supervisor should be. Patrick, you are a different story. From a "what-does-not-kill-you-makes-youstronger"-attitude towards you, I really learned to appreciate your immense knowledge and research talent as time passed. Initially, my -or, potentially better, "our" -stubbornness limited the extent to which I was willing to listen to your great comments and suggestions.1 Yet, as we were strolling through New York City one day, I realized that we both made a lot of progress over the past three years -I as a PhD student and you as a PhD supervisor -and I dare to say that my dissertation would not have been in its current final state without your involvement, company and support during conferences, and helpful comments and suggestions. While I have so far focused on the two of you in isolation, in my opinion you were at your very best when you were together. For me, the two of you were the best supervisor team I could have wished for and I honestly hope that many future PhD students can experience (and enjoy) your joint supervision! Further, I would like to thank my promotor, Frank Moers, for his guidance and support during my PhD. Frank, even though you were not intensively involved in my day-to-day activities, you were always willing...

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Audit Reporting for Going-Concern Uncertainty: A Research Synthesis

Cited by 273 publications

References 120 publications

Audit reporting for going concern in Spain during the global financial crisis

Audit reporting for going concern in Spain during the global financial crisis

Näkökulmia tilintarkastukseen ja arviointiin

The role of firm life cycle in the functioning of capital markets

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