Download or read book Strategic Auditor Behavior and Going Concern Decisions written by Ella Mae Matsumura and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes a game theoretic model in which a client can potentially avoid a going concern opinion and its self fulfilling prophecy by switching auditors. Incumbent auditors are less willing to express a going concern opinion the more credible the client's threat of dismissal and the stronger the self fulfilling prophecy effect. Similarly, the client is more willing to switch auditors the more likely it is that auditors' reporting judgments will differ and the stronger the self fulfilling prophecy effect. Further, with greater noise in the auditor's forecast of client viability, the auditor tends to express fewer going concern opinions.
Download or read book Auditor Going Concern Reporting written by Marshall A. Geiger and published by Routledge. This book was released on 2021-06-09 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditor reporting on going-concern-related uncertainties remains one of the most challenging issues faced by external auditors. Business owners, market participants and audit regulators want an early warning of impending business failure. However, companies typically do not welcome audit opinions indicating uncertainty regarding their future viability. Thus, the auditor’s decision to issue a "going concern opinion" (GCO) is a complex and multi-layered one, facing a great deal of tension. Given such a rich context, academic researchers have examined many facets related to an auditor’s decision to issue a GCO. This monograph reviews and synthesizes 182 recent GCO studies that have appeared since the last significant review published in 2013 through the end of 2019. The authors categorize studies into the three broad areas of GCO: (1) determinants, (2) accuracy and (3) consequences. As an integral part of their synthesis, they summarize the details of each study in several user-friendly tables. After discussing and synthesizing the research, they present a discussion of opportunities for future research, including issues created or exacerbated as a result of the global COVID-19 pandemic. This monograph will be of assistance to researchers interested in exploring this area of auditor responsibility. It will also be of interest to auditing firms and individual practitioners wanting to learn what academic research has examined and found regarding this challenging aspect of audit practice. Auditing standard-setters and regulators will find it of interest as the authors review numerous studies examining issues related to audit policy and regulation, and their effects on GCO decisions. The examination of GCO research is extremely timely given the financial and business disruption caused by the worldwide COVID-19 pandemic. This unprecedented global event has caused companies, auditors and professional bodies to revisit and reassess their approach to going concern, and to think even more deeply about this fundamental business imperative.
Download or read book The Effect of Stage of Development and Financial Health on Auditor Decision Behavior in the Going Concern Task written by Andrew J. Rosman and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The effect of different task settings within an industry on auditor behavior is examined for the going-concern task. Using an interactive computer process-tracing method, experienced auditors from four Big 6 accounting firms examined cases based on real data that differed on two dimensions of task settings: stage of organizational development (start-up and mature) and financial health (bankrupt and nonbankrupt). Auditors made judgments about each entity?s ability to continue as a going concern and, if they had substantial doubt about continued existence, they listed evidence they would seek as mitigating factors. There are seven principal results. First, information acquisition and, by inference, problem representations were sensitive to differences in task settings. Second, financial mitigating factors dominated nonfinancial mitigating factors in both start-up and mature settings. Third, auditors? behavior reflected configural processing. Fourth, categorizing information into financial and nonfinancial dimensions was critical to understanding how auditors? information acquisition and, by inference, problem representations differed across settings. Fifth, Type I errors (determining that a healthy company is a going-concern problem) differed from correct judgments in terms of information acquisition, although Type II errors (determining that a problem company is viable) did not. This may indicate that Type II errors are primarily due to deficiencies in other stages of processing, such as evaluation. Sixth, auditors who were more accurate tended to follow flexible strategies for financial information acquisition. Finally, accurate performance in the going-concern task was found to be related to acquiring (1) fewer information cues, (2) proportionately more liquidity information and (3) nonfinancial information earlier in the process.
Download or read book Understanding Auditor Decision Behavior in Different Going Concern Task Settings written by Andrew J. Rosman and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The going-concern decision is studied within a framework that varies task settings. Using an interactive computer process-tracing method, experienced auditors from four Big 6 firms examined cases based on real data that differed in financial health (bankrupt and nonbankrupt) and stage of organizational development (start-up and mature). They made judgments about each entity's ability to continue as a going concern and if they had substantial doubt about continued existence, they listed evidence they would seek as mitigating factors. There are six principal findings. First, problem representations and information acquisition were sensitive to differences in task settings. Second, mitigating factors generally remained constant across settings. Third, auditors' behavior reflected configural processing in the presence of audit settings that differed on multiple dimensions. Without the computer process-tracing method used in this study, this configural processing may not have been detected. Fourth, categorizing information into financial and nonfinancial dimensions was critical to understanding how auditors problem representations differed across settings. Fifth, Type I errors (determining that a health company is a going-concern problem) differed from correct judgments in terms of information acquisition, although Type II errors (determining that a problem company is viable) did not. This finding may indicate that Type II errors are primarily due to deficiencies in other stages of processing, such as evaluation. Finally, accurate performance in the going-concern task was found to be related to acquiring fewer information cues, proportionately more liquidity information, and nonfinancial information earlier in the process.
Download or read book Auditing written by Lawrence A. Ponemon and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book has been prepared for those readers who want to maintain their knowledge of current developments in the field of behavioral research as applied to auditing. The articles and papers presented in this volume were selected because they will contribute to the knowledge and advancement of not only the individual researcher or educator, but also of the profession. It is our belief that if research endeavors may be viewed as having stages of life, then the field of behavioral research in auditing is in its genesis. Almost twenty years ago, in speaking of the state of the art of psychology, William Hays expressed a most·appropriate thought: Experimental evidence is accumulating at a rapid rate in psychology, and efforts at constructing psychological theories with mathematical deductive power are constantly being made. However, it seems safe to say that it will be sometime before there are psychological laws and theories on a par with those of physics. The absence of a general theory does not imply that those relations are missing or unhpportant in psychology; the discovery and specification of relations is the process by which those theories are built. (Hays, 1973, p. 40.) In the first chapter, "Experimental Research and the Distinctive Features of Accounting Settings," Robert Libby presents an encompassing and knowledgeable summary of the changes that have taken place during the last decade in human information processing research in accounting and experimental economics as it relates to those issues.
Download or read book Audit Reporting for Going Concern Uncertainty written by Sandro Brunelli and published by Springer. This book was released on 2018-02-07 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book employs a narrative analytical approach to explore all aspects of the debate surrounding auditor reporting on going concern uncertainty worldwide. In-depth analysis of significant academic studies and of regulatory perspectives is combined with an illuminating empirical study in the Italian context. The book opens by discussing the assessment of going concern for accounting and auditing purposes. It is examined how going concern is considered in the FASB and IASB accounting standards and how auditors in the PCAOB and IAASB environments should verify its presence in financial statements and report on it in the audit report. Accounting and auditing in relation to going concern in other jurisdictions are also addressed. Research into the determinants, accuracy, and consequences of going concern opinions (GCO) is then thoroughly reviewed, with separate examination of studies and trends in the United States, Europe, and the rest of the world. In the third part of the book, interesting evidence from the Italian Stock Market, including investor reactions to GCOs during the period 2008–2014, is presented and evaluated. The book will be of interest to academics, regulators, and practitioners alike.
Download or read book A Multivariate Analysis of the Auditor s Going concern Opinion Decision written by Jane Frances Mutchler and published by . This book was released on 1984 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Investigation Into Auditors Going Concern Decisions written by Thomas Edward Kida and published by . This book was released on 1978 with total page 502 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Empirical Examination of the Going concern Audit Opinion written by William Joey Styron and published by . This book was released on 1993 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Strategic Actions and Going concern Audit Opinions written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Investigation Into Auditor s Going Concern Decisions written by Thomas Edward Kida and published by . This book was released on 1984 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Management Through Accounts written by James Harris Bliss and published by . This book was released on 1924 with total page 880 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auditor s Going concern Reporting written by Nina Sormunen and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The going-concern context has been the subject of much research and discussion for many years at both academic and professional levels. The International Standard on Auditing (ISA) 570 stipulates that the auditor should consider the appropriateness of managements' use of the goingconcern assumption and to evaluate whether there are material uncertainties with respect to entity's ability to continue as a going concern. Regardless of what is stated in the financial statement, the auditor should comment on going-concern uncertainty in the audit report if there is a doubt about firm's ability to continue as a going concern. There is strong evidence that the auditor's going-concern decision is a complex task with extensive consequences. The primary purpose of this thesis is to empirically provide significant basis to get better understanding of the challenging nature of the auditor's going-concern reporting. This thesis deals with different aspects of auditor's going-concern reporting and contributes mainly to the line of auditing research.
Download or read book Advances in Accounting Behavioral Research written by Vicky Arnold and published by Emerald Group Publishing. This book was released on 2006-06-05 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents an empirical research in accounting theory. This book includes content that crosses into the fields of applied psychology, sociology, management science, and economics.
Download or read book The Auditor s Going Concern Opinion Decision written by Ann Vanstraelen and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research attempts to find empirical evidence of ex ante factors relating to the economic trade?offs that an auditor faces when deciding whether or not to disclose going concern uncertainties in an audit report in a non?litigious continental European setting, Belgium. The research methodology consists of univariate and logistic regression analysis. The results of the study confirm the belief that the auditor's going concern opinion decision is not only a question of competence but also of independence. A significant moderating factor appears to be recent client loss on the part of the auditor. The legal obligation for Belgian auditors to refer to the report of the Board of Directors in their own audit report seems to significantly influence their reporting behaviour. The disclosure by the Board of Directors of bad news regarding the state of affairs of a company diminishes any conflict of interest that may exist between the Board and the auditor. However, no evidence was found to justify the fear for a self?fulfilling prophecy effect.
Download or read book Working Paper Series written by and published by . This book was released on 1985 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Auditor s Going concern Opinion written by Ann Vanstraelen and published by . This book was released on 2000 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt:
