Audit Report Lag and Audit Going Concern Qualification in Malaysia

SUMMARY We obtain a novel dataset of workplace satisfaction ratings submitted by about 100,000 employees working for large public U.S. companies. We document that lower workplace ratings are associated with higher audit fees and longer audit report lags. Lower workplace ratings also increase the likelihood of firms receiving modified going concern opinions. Our study shows that organizational workplace environments affect auditor risk assessments and auditing outcomes and provide insights for practicing auditors and corporate executives. Our interviews with practicing auditors at large U.S. accounting firms also provide insights as to how workplace quality affects the corporate audit. JEL Classifications: G3; J28; M14; M42.

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Analysis of going concern modified audit report in Indonesia and Singapore

International Journal of Business and Globalisation ◽

10.1504/ijbg.2018.10009524 ◽

2018 ◽

Vol 20 (1) ◽

pp. 120

Author(s):

Shiella Budiawan ◽

Martin Surya Mulyadi

Keyword(s):

Audit Report ◽

Going Concern

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Investor Reaction to Going Concern Audit Reports

The Accounting Review ◽

10.2308/accr.2010.85.6.2075 ◽

2010 ◽

Vol 85 (6) ◽

pp. 2075-2105 ◽

Cited By ~ 98

Author(s):

Krishnagopal Menon ◽

David D. Williams

Keyword(s):

Institutional Investors ◽

Institutional Ownership ◽

Audit Report ◽

Going Concern ◽

New Information ◽

Debt Covenant ◽

Low Levels ◽

Audit Reports ◽

Investor Reaction ◽

Larger Sample

ABSTRACT: The literature provides mixed evidence on whether investors find audit reports modified for going concern reasons to be useful. Using a substantially larger sample than previous studies, we observe negative excess returns when the going concern audit report (GCAR) is disclosed. We find that the reaction is more negative if the GCAR cites a problem with obtaining financing, suggesting that the GCAR provides new information to investors. Also, the reaction is more adverse if the GCAR triggers a technical violation of a debt covenant that restricts the firm from getting a GCAR. The evidence suggests that institutional investors drive the reaction to the GCAR, since there is no detectable reaction at low levels of institutional ownership. The market reaction gets more negative as the level of institutional ownership increases, and there is a decline in institutional ownership after the GCAR is issued. We attribute these results to sophisticated investors’ awareness of the firm’s financing needs and the covenants carried by the firm’s debt.

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The Effect of Going Concern Uncertainty Opinion on Audit Report Lag

Accounting Information Review ◽

10.29189/kaiaair.37.2.4 ◽

2019 ◽

Vol 37 (2) ◽

pp. 73-92

Author(s):

Tae-Dong Kim ◽

Chang-Hyun Bae ◽

Hyun-Ji Lim

Keyword(s):

Audit Report ◽

Going Concern

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The Effects of the Type and Content of Audit Reports for Financially Stressed Initial Public Offerings on Information Uncertainty

Auditing A Journal of Practice & Theory ◽

10.2308/ajpt-52561 ◽

2020 ◽

Vol 39 (1) ◽

pp. 125-150 ◽

Cited By ~ 1

Author(s):

Steven E. Kaplan ◽

Gary K. Taylor ◽

David D. Williams

Keyword(s):

Initial Public Offerings ◽

Initial Public Offering ◽

Data Availability ◽

Information Uncertainty ◽

Audit Report ◽

Public Offerings ◽

Going Concern ◽

Sufficient Variation ◽

Public Offering ◽

Audit Reports

SUMMARY The Public Company Accounting Oversight Board (PCAOB) has expressed concern that audit reports do not contain sufficient variation to provide useful information to the market. Using a sample of financially stressed initial public offering (IPO) firms, we investigate whether information uncertainty is affected by (1) three different types of audit reports—unqualified (clean), hybrid (with explanatory language about financial stress), and going concern (GCAR)—and (2) audit report disclosures. We provide evidence that audit reports (hybrid and GCAR) and audit report disclosures provide useful information to the market by finding a significant reduction in information uncertainty. Just as important, we find that management discretionary going concern disclosures do not complement or substitute for the reduction in information uncertainty associated with hybrid audit reports and GCARs. We provide evidence that current audit report types and disclosures of financially stressed IPO firms provide information to the market. JEL Classifications: M40; M42; G14. Data Availability: The data used in this study are available from public sources indicated in the paper.

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Trading Styles, Inc.: An Analysis of the Going Concern Assessment

Issues in Accounting Education ◽

10.2308/iace-51218 ◽

2015 ◽

Vol 31 (3) ◽

pp. 355-366 ◽

Cited By ~ 1

Author(s):

Velina K. Popova ◽

Sarah E. Stein

Keyword(s):

Real World ◽

Auditor Independence ◽

Primary Objective ◽

Audit Report ◽

Going Concern ◽

Real World Setting ◽

Auditing Standards ◽

Analytical Procedures

ABSTRACT This instructional case focuses on the auditor's going concern decision for a private retail client. The primary objective of this case is to understand and examine the auditor's consideration of the client's ability to continue as a going concern in a real-world setting. The case provides students with the financial aspects as well as the personal aspects of such a decision. Specifically, students must complete analytical procedures and evaluate information from several sources when forming their opinion. We also ask students to contemplate the auditor's relationship with the client in order to understand issues involving auditor independence. Throughout the case, students have the opportunity to review applicable auditing standards and to draft a going concern audit report. We expect this case would be most applicable for an undergraduate or a graduate audit course.

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Whatts in a Name? The Impact of U.S. Audit Partner Identification on Going Concern Audit Report Modifications

SSRN Electronic Journal ◽

10.2139/ssrn.3113890 ◽

2018 ◽

Cited By ~ 1

Author(s):

Lawrence Abbott ◽

Colleen Boland ◽

William L. Buslepp ◽

Sean McCarthy

Keyword(s):

Audit Report ◽

Going Concern ◽

The Impact

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Determinasi Audit Report Lag

Kompartemen Jurnal Ilmiah Akuntansi ◽

10.30595/kompartemen.v18i1.4112 ◽

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.

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