Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1888766
Auditor’s going-concern opinion prediction: the case of Slovenia
Daniel Zdolšek
orcid.org/0000-0002-6316-4171
Timotej Jagrič
Iztok Kolar
Sažetak
In an audit of a firm’s financial statements, the auditor assesses
whether there is material uncertainty about the firm’s ability to
continue as a going concern. If the existence of material uncertainty is confirmed, the auditor considers the adequacy of the
firm’s disclosures regarding its going concern in the firm’s annual
report. Most commonly, if the firm’s disclosures are adequate, the
auditor issues a going-concern opinion in the auditor’s report.
The auditor modifies his opinion on firm’s financial statements
because of auditor’s going-concern doubt on the firm’s ability to
continue as a going-concern rarely in specific circumstances. In
the present paper we provide an auditor’s going-concern prediction model using various combinations of a firm’s economic predictors. A sample data of 14,761 firm-year observations from
Slovenia during the period 2005–2013 has been used for the
model. The results reveal that firms with a going-concern qualification have a worse financial structure (i.e., lower equity financing
rates), worse liquidity, worse efficiency, and worse profitability in
comparison to firms without this qualification. Using a logistic
regression prediction model for a going concern qualification in
auditor’s report, qualification can be predicted with sufficient
accuracy on a sample data of Slovenian firms
Ključne riječi
Audit; going-concern opinion; prediction; audit model; Slovenia
Hrčak ID:
301678
URI
Datum izdavanja:
31.3.2023.
Posjeta: 258 *