scholarly journals Going-Concern Opinions, Auditor Switching, and the Self-Fulfilling Prophecy Effect Examined in the Regulatory Context of Belgium

2003 ◽  
Vol 18 (2) ◽  
pp. 231-254 ◽  
Author(s):  
Ann Vanstraelen
Keyword(s):  
Debt Financing ◽  
The Self ◽  
Audit Firm ◽  
Empirical Results ◽  
Going Concern ◽  
Auditor Switching ◽  
The Third ◽  
Going Concern Opinion ◽  
Probability Of Bankruptcy ◽  
Going Concern Reports

Previous studies have demonstrated that auditors are reluctant to issue going-concern opinions. Some suggest this reluctance is strategic and stems from the auditor's desire to avoid loss of clients or reputation. This paper investigates the threat of loss resulting from auditor switching and client bankruptcy in the regulatory context of Belgium. Belgium requires companies to engage an audit firm for a three-year period. Consequently, the client's threat of switching auditors is potentially more credible in the third year than in the first two years. The empirical results support the hypothesis that going-concern opinions significantly increase the probability of bankruptcy. Thus, going-concern reports remain relevant even in a country where debt financing is dominant. In addition, clients are four times more likely to switch auditors at the end of the mandatory term if they receive a going-concern opinion in the final year of the term relative to the previous two years. This strongly suggests that mandatory terms influence the association between going-concern opinions and auditor switching.

UKURAN KANTOR AKUNTAN PUBLIK, DISCRETIONARY ACCRUALS DAN OPINI AUDIT GOING CONCERN

2019 ◽  
Vol 15 (1) ◽  
pp. 11
Author(s):  
Ravaela Amba Masiku ◽  
Christine Novita Dewi
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Audit Firm ◽  
Going Concern ◽  
Discretionary Accrual ◽  
Audit Firms ◽  
Going Concern Opinion ◽  
Positive Effect

The purpose of this study is to examine auditor’s concervatism in term of their reaction to client’s earnings management behavior and their limitations to issue the going concern opinions (GCO). The population of this study consists of 672 observations from 69 companies are listed on the Indonesia Stock Exchange (BEI) during 2012-2017. The author used the modified Jones model to measure discretionary accruals as a proxy of earnings management. The results of this study indicate that size of audit firm has a positive effect to discretionary accrual. Companies that have been audited by the Big4 tend to apply discretionary accrual in their financial reporting than companies audited by Non-Big4. Further, to strenghten the first hypothesis, we examine the effect of discretionary accruals and going concern opinion on companies that audited by audit firms Big4 lower than companies that audited by audit firms Non-Big4. We found that the result is consistent with the first hypothesis. Keywords : auditor reputation, discretionary accruals, going concern opinion, audit firm  ABSTRAK Tujuan dari penelitian ini adalah untuk menguji konservatisme auditor dalam hal reaksi auditor terhadap akrual diskresioner yang dilakukan oleh perusahaan dan keterbatasan auditor untuk menerbitkan opini Going Concern (GC). Populasi penelitian terdiri dari 672 pengamatan dari 69 perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) selama tahun 2012-2017. Penulis menggunakan model modifikasi Jones untuk mengukur akrual diskresioner sebagai proksi manajemen laba. Hasil dari penelitian ini menjelaskan bahwa ukuran kantor akuntan publik berpengaruh positif terhadap akrual diskresioner, hal tersebut diperkuat dengan pengaruh akrual diskresioner dan opini audit going concern yang diaudit oleh kantor akuntan publik Big4 lebih rendah dari perusahaan yang tidak diaudit oleh kantor akuntan publik Non-Big4. Kata kunci : reputasi auditor, akrual diskresioner, opini audit going concern, kantor akuntan publik

Audit firm characteristics and Type II errors in the going concern opinion

2002 ◽  
Vol 9 (1) ◽  
pp. 39-69 ◽  
Author(s):  
Kimberly A. Dunn ◽  
Christine E. L. Tan ◽  
Elizabeth K. Venuti
Keyword(s):  
Type Ii ◽  
Firm Characteristics ◽  
Audit Firm ◽  
Going Concern ◽  
Going Concern Opinion ◽  
Type Ii Errors

Threats to Auditor Independence: The Impact of Relationship and Economic Bonds

2011 ◽  
Vol 30 (1) ◽  
pp. 121-148 ◽  
Author(s):  
Ping Ye ◽  
Elizabeth Carson ◽  
Roger Simnett
Keyword(s):  
Audit Quality ◽  
Joint Effect ◽  
Auditor Independence ◽  
Audit Firm ◽  
Going Concern ◽  
Long Duration ◽  
Going Concern Opinion ◽  
Negative Effect ◽  
Nonaudit Services ◽  
The Impact

SUMMARY: This study examines the association of a comprehensive set of auditor-client relationship bonds (audit firm tenure, audit engagement partner tenure, long duration director-auditor relationships, and alumni affiliation) with the level of economic bonds provided to an audit client (nonaudit services [NAS]). We further examine the effect of these economic and relationship bonds on auditor independence in the context of nonaudit services fees and the propensity to issue going-concern opinions. It is these economic and relationship bonds that have attracted the interest of regulators in their consideration of audit quality. This study was undertaken in Australia in 2002, which provided a context in which all these relationships could be examined before new regulations were introduced. Results show that audit firm tenure and alumni affiliation are associated with clients purchasing auditor-provided NAS, with stronger associations for clients with low agency costs. We further find that long audit engagement partner tenure and a joint effect of auditor-provided NAS and alumni affiliation have a negative effect on the auditor’s propensity to issue a going-concern opinion.

scholarly journals Determinasi Audit Report Lag

2020 ◽  
Vol 18 (1) ◽  
Author(s):  
Dwi Anjani ◽  
Sigit Hermawan ◽  
Sarwenda Biduri
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Size ◽  
Audit Report ◽  
Going Concern ◽  
Auditor Switching ◽  
Going Concern Opinion ◽  
Negative Effect

This research aims to verify and provide empirical evidences about: The effect of Auditor Switching, Going Concern Opinion, Profit or Loss of current year and Company Size to the Audit Report Lag at companies LQ-45 that are listed on Indonesian Stock Exchange during the period 2011-2015.The population of this research are the LQ-45 companies listed in Indonesia Stock Exchange during the period 2011-2015. Sampling method using purposive sampling and obtain 15 companies. Data collection method used is the documentation. The analysis used is multiple linear regression analysis to test the hypothesis. The results shows that Auditor Switching and Opini Going Concern does not effect to Audit Report Lag partially, but Profit or Loss of current year and Company Size gave negative effect on Audit Report Lag partially. Auditor Switching, Opini Going Concern, Profit or Loss in year going and Company Size gave significant effect on Audit Report Lag simultaneously.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PERUSAHAAN MANUFAKTUR TERDAFTAR DI BEI MELAKUKAN VOLUNTARY AUDITOR SWITCHING

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Nugroho teguh Benianto
Keyword(s):  
Logistic Regression ◽  
Financial Distress ◽  
The Other ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Going Concern ◽  
Auditor Switching ◽  
Going Concern Opinion ◽  
Period Data ◽  
Management Changes

Auditor’s Independence issue is the main cause why companies must do auditor switching mandatorily. Many questions rise when actually there were some companies did voluntary auditor switching outside the rule of auditor switching KMK No. 359/KMK.06/2003 which has been revised to be PMK No. 17/PMK.01/2008. This research is purposed to find empirical evidences about the factors that influence manufacturing companies which are listed in BEI to do voluntary auditor switching. Variables that are used in this research are going concern opinion (OGC), management changes (PM), auditor’s reputation (RA), financial distress (KK), auditor’s fee (LNFEE), and voluntary auditor switching (SWITCH).The data being used is from manufacturing company which is listed in BEI in 2007-2010 period. Data collecting method which used in this research is method purposive sampling, that based on criteria which has been determined before. Based on the method purposive sampling, research sample total is 276 companies. Hypothesis in this research are tested by logistic regression analytical method.Result of this research indicates that variable having which significantly effect the voluntary auditor switching is auditor reputation. On the other hand,other variables like going concern opinion, management changes, financial distress, and auditor’s fee do not have significant effect on company decision to do voluntary auditor switching.

Pèlerinages barrésiens

2013 ◽  
pp. 116-123
Author(s):  
Claire Bompaire-Evesque
Keyword(s):  
Large Scale ◽  
The Self ◽  
Joan Of Arc ◽  
The Third ◽  
National Importance ◽  
The Earth ◽  
Third Stage ◽  
The Dead

This article is a inquiry about how Barrès (1862-1923) handles the religious rite of pilgrimage. Barrès stages in his writings three successive forms of pilgrimage, revealing what is sacred to him at different times. The pilgrimage to a museum or to the birthplace of an artist is typical for the egotism and the humanism of the young Barrès, expressed in the Cult of the Self (1888-1891). After his conversion to nationalism, Barrès tries to unite the sons of France and to instill in them a solemn reverence for “the earth and the dead” ; for that purpose he encourages in French Amities (1903) pilgrimages to historical places of national importance (battlefields; birthplace of Joan of Arc), building what Nora later called the Realms of Memory. The third stage of Barrès’ intellectual evolution is exemplified by The Sacred Hill (1913). In this book the writer celebrates the places where “the Spirit blows”, and proves open to a large scale of spiritual forces, reaching back to paganism and forward to integrative syncretism, which aims at unifying “the entire realm of the sacred”.

The Going Concern Opinion: A Time for a Referendum?

2010 ◽  
Author(s):  
Igor Pustylnick ◽  
Vicki Anderson ◽  
John H. Nugent
Keyword(s):  
Going Concern ◽  
Going Concern Opinion
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