An analysis of determinants of going concern audit opinion: evidence from Spain stock exchange

Purpose: The main objective of this article is to go in-depth into the relationship between going concern audit opinion and certain characteristics of the company and auditor, including financial decline. Design/methodology/approach: A Logit analysis was carried out in order to enable us to discover...

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Detalhes bibliográficos
Autores: Gallizo Larraz, Jose Luis, Saladrigues, Ramon
Tipo de documento: artigo
Data de publicação:2016
País:España
Recursos:Universitat Politècnica de Catalunya (UPC)
Repositório:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglês
OAI Identifier:oai:upcommons.upc.edu:2117/85508
Acesso em linha:https://hdl.handle.net/2117/85508
https://dx.doi.org/10.3926/ic.683
Access Level:Acceso aberto
Palavra-chave:Auditing
Financial statements--Analysis
Audit
Financial decline
Going concern audit opinion
Auditoria
Estats financers -- Anàlisi
Àrees temàtiques de la UPC::Economia i organització d'empreses
Descrição
Resumo:Purpose: The main objective of this article is to go in-depth into the relationship between going concern audit opinion and certain characteristics of the company and auditor, including financial decline. Design/methodology/approach: A Logit analysis was carried out in order to enable us to discover the probability of receiving a going concern audit opinion. Findings: Characteristics of the company and characteristics of the auditor are discussed, and the analysis indicates that it is not financial decline, but rather registering losses and being audited by a small-scale auditor, that increase the likelihood of a company receiving a going concern audit opinion. Practical implications: The results obtained are interesting for the profession and users because they provide evidence of the reasons that converge in the cases where a going concern audit opinion is included in the auditing reports of companies characterised by being immersed in a financial crisis. Originality/value: This article considers the circumstances of both the company and the auditing process, which influence the fact that the auditing report includes a going concern audit opinion. In addition, the article includes the financial decline, and let us to analyze if the decline of the company’s financial position between t-1 and t causes the auditor to include a going concern audit opinion.