Auditors' going-concern-modified opinions after 2011 : measuring reporting accuracy

Carey, Peter, Kortum, Stuart and Moroney, Robyn 2012, Auditors' going-concern-modified opinions after 2011 : measuring reporting accuracy, Accounting and finance, vol. 52, no. 4, pp. 1041-1059.

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Title Auditors' going-concern-modified opinions after 2011 : measuring reporting accuracy
Author(s) Carey, PeterORCID iD for Carey, Peter
Kortum, Stuart
Moroney, Robyn
Journal name Accounting and finance
Volume number 52
Issue number 4
Start page 1041
End page 1059
Total pages 9
Publisher AFAANZ
Place of publication Richmond, Vic.
Publication date 2012-12
ISSN 0810-5391
Keyword(s) Going concern
Audit reports
Summary An important change in auditors’ reporting behaviour in the period after the high-profile corporate collapses in 2001 is that auditors were more likely to issue going-concern (GC)-modified audit opinions. Comparing company failure rates subsequent to receiving a first-time going-concern (FTGC)-modified audit opinion in the pre- and post-2001 periods, we find a consistent type 1 error (misclassification) rate (the rate of survival among companies issued an FTGC opinion). Results are indicative of auditors maintaining GC reporting accuracy when comparing the 1995–1996 and 2004–2005 periods. This conclusion is supported after considering the impact of mitigating circumstances surrounding companies that received an FTGC-modified audit report and survived.
Language eng
Field of Research 150102 Auditing and Accountability
Socio Economic Objective 970114 Expanding Knowledge in Economics
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
HERDC collection year 2012
Copyright notice ©2012, AFAANZ
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Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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