scholarly journals A Multicriterion Decision Support Methodology For Audit Opinions: The Case Of Audit Reports Of Distressed Firms In Turkey

2011 ◽  
Vol 10 (12) ◽  
pp. 37 ◽  
Author(s):  
Burcu Adiloglu ◽  
Bengu Vuran
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Audit Report ◽  
Audit Process ◽  
Audit Opinion ◽  
Accounting Scandals ◽  
Distressed Firms ◽  
Audit Opinions ◽  
One Year ◽  
Audit Reports

The audit report represents the most important part of the audit process and it is the sole communication medium between the auditor and the users of the financial statements. After accounting scandals, auditors responsibility for assessing the appropriateness of audit opinions has become the subject of much debate in the auditing profession and considerable research by academics. This increased attention is due to the fact that auditors appear to be reluctant to disclose audit opinions other than unqualified. Indeed, many companies in the year prior to bankruptcy receive an audit report in which going concern uncertainty is not disclosed. The research of this paper is designed to examine the relationship between the type of audit reports and firm failure. Logistic regression analysis is applied to test the model of audit opinion decision with a sample of financially distressed firms operating in manufacturing sector in Istanbul Stock Exchange (ISE) between the period of 1998-2006. The results reveal that the audit opinions of distressed firms indicate the auditors fail to issue appropriate audit opinions one year prior to failure.

Determinant of Audit Report Lag Among Mining Companies in Indonesia

2019 ◽  
Vol 15 (1) ◽  
pp. 68
Author(s):  
Sari Angriany Natonis ◽  
Bambang Tjahjadi
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Annual Reports ◽  
Fiscal Year ◽  
Company Size ◽  
Audit Report ◽  
Public Accounting ◽  
Audit Opinion ◽  
Accounting Firm ◽  
Mining Companies

Time period in completing the audit work until the date of publishing audit report is called audit report lag. BAPEPAM requires each of going-public companies to publish their annual reports not later than three months after the fiscal year ends. The aim of this research was to determine the effect of profitability, solvency, company size, audit opinion, and size of public accounting firm on audit report lag at mining companies listed on Indonesia Stock Exchange during the period of 2013-2017. As many as 12 samples were obtained through purposive sampling technique. The data analysis technique used was the multiple regression analysis. The results showed that the profitability and company size negatively affected the audit report lag, while the other variables, such as solvency, audit opinion, and size of public accounting firm, had no significant effect on the audit report. The result of simultaneous test showed that all independent variables influenced audit report lag with 32.8% of determination coefficient.

The moderating role of audit quality on the relationship between auditor reporting and earnings management: empirical evidence from Tunisia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fakhfakh Imen ◽  
Jarboui Anis
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Generalized Least Squares ◽  
Content Type ◽  
Audit Opinion ◽  
Before And After ◽  
Audit Opinions ◽  
Auditor Reporting ◽  
The Relationship

PurposeThe purpose of this study is to examine the interrelationship between modified audit opinions and earnings management as measured by discretionary accruals and develop a thorough understanding regarding the moderating effect of audit quality on this relation.Design/methodology/approachThis study uses a sample of Tunisian listed firms on the Tunis Stock Exchange during 2006–2013. Four models are developed and tested by using panel logistic and Feasible Generalized Least Squares (FGLS) regressions.FindingsThe results show that earnings management increases the likelihood of receiving a modified audit opinions. Then firms receiving modified audit opinions manage earnings more than those receiving clean opinions. It is also discovered that audit quality moderates the relationship between audit opinion and earnings management.Practical implicationsThis paper contributes to the literature of both audit and management studies and represents the first effort to examine the relation between audit opinion and earnings management, with audit quality as a moderating variable.Originality/valueThis study extends existing research on earnings management and audit opinion. Thus, this study has the potential to help stakeholders, board of directors, regulators and auditors, who are related with enhancing the supervision of firms and reducing the opportunities given to managers, to engage in earnings management. It constitutes an addition to previous knowledge about audit opinion in the Tunisian context before and after revolution.

Justifications for the Modified Opinions and for Other Observations in the Audit Reports

2020 ◽  
Vol 18 (160) ◽  
pp. 785-800
Author(s):  
Costel ISTRATE ◽  
◽  
Ovidiu Constantin BUNGET ◽  
Irimie Emil POPA ◽  
◽  
...  
Keyword(s):  
Stock Exchange ◽  
Legal Issues ◽  
Global Crisis ◽  
Going Concern ◽  
Tangible Assets ◽  
Fixed Assets ◽  
Main Observation ◽  
Audit Opinions ◽  
Audit Reports

The purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The authors analyze a sample of more than 1,000 observations-year for the 2007-2019 period. They found that 25% of these reports contain a modified opinion and the main explanations relate to the revaluations of fixed tangible assets, to the provisions, to the impairment of the fixed assets, to some legal issues, to items concerning the closing inventory and, to a lesser extent, to the going concern matters. In 30% of the reports analyzed, there was identified emphasis of matter paragraphs; the main observation is by far related to the going concern, followed by the financial and operating difficulties of companies and by the effects of different global crisis (financial or others).

The effect of CEO tenure and specialization on timely audit reports of Iranian listed companies

2018 ◽  
Vol 56 (2) ◽  
pp. 311-328 ◽  
Author(s):  
Mahdi Salehi ◽  
Mahmoud Lari Dasht Bayaz ◽  
Mohamadreza Naemi
Keyword(s):  
Significant Relationship ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Audit Report ◽  
Content Type ◽  
Natural Logarithm ◽  
Ceo Tenure ◽  
Financial Expertise ◽  
Audit Reports

Purpose The purpose of this paper is to examine whether the characteristics of a CEO, that is, tenure and financial expertise, could affect the timeliness of an audit report. Design/methodology/approach Research data gathered from listed companies on the Tehran Stock Exchange during the four-year period 2013-2016. Findings The results obtained from model fittings indicated that there is only a negative and significant relationship between CEO financial expertise and natural logarithm of audit report lag and no significant relationship observed between the former and two other indices of timely audit report. Moreover, no significant relationship was found between the CEO tenure and other three indices of timely audit report. Originality/value This paper is the first study, which developed the literature of timely audit report using CEO tenure effect and financial expertise tests for timely audit reports in Iran.

scholarly journals DOES FINANCIAL DISTRESS HAS AN EFFECTS ON AUDIT REPORT LAG? (STUDY ON MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE)

AKUNTABILITAS ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 19-34
Author(s):  
Nur Khamisah ◽  
Anisa Listya ◽  
Nyimas Dewi Murnila Saputri
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Manufacturing Companies ◽  
Z Score ◽  
Audit Report ◽  
Audit Process ◽  
Final Sample ◽  
Cpa Firm ◽  
Big Four

This study aims to examine the effect of financial distress on audit report lag and how the size of CPA Firm moderate the effect between financial distress and audit report lag. This study was held at manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The final sample there were 318 observations, with a purposive sampling method. The variable financial distress is measured by the Altman Z Score proxy, which is the best model for measuring the state of financial distress being experienced by the company. The size of CPA Firm is measured by dummy variables, given a value of 1 if it is a Big Four CPA Firm and 0 if it is not a Big Four CPA Firm. This study use multiple linear regression to analyze the data. Based on the results of the analysis found that financial distress has negative and significant effect on audit report lag. It means that the smaller the Z Score of a company (which means the company is experiencing financial distress), the longer the financial statement audit process will be. This negative relationship between financial distress is strengthened by the size of CPA Firm.

scholarly journals Pengaruh Leverage, Opini Audit Tahun Sebelumnya, Pertumbuhan Perusahaan, dan Ukuran Perusahaan terhadap Opini Audit Going Concern

Owner ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 164-173
Author(s):  
Kusuma Indawati Halim
Keyword(s):  
Stock Exchange ◽  
Company Size ◽  
Manufacturing Companies ◽  
Audit Opinion ◽  
Going Concern ◽  
Additional Information ◽  
Financial Condition ◽  
Going Concern Opinion ◽  
Audit Reports ◽  
Company Growth

Audit reports are used by auditors to inform the accuracy of the information in the financial statements. The auditor as an independent party has the competence to provide an opinion on the client's financial condition. If it is estimated that the company cannot continue its activities, it is likely that it will get a going concern audit opinion. Audit opinion can help investors and other stakeholders in assessing the status of the company's business continuity. The important thing from a going concern audit opinion is to provide additional information for investors in making investment decisions. This study analyzes the factors that determine going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange. The factors tested in this study are leverage, initial opinion, company growth and company size. The study used a sample of 125 companies for the 2014-2018 period. The results of data analysis were obtained from logistic regression tests. The empirical results show that prior opinion and leverage increase the likelihood of receiving a going concern opinion. Meanwhile, company growth and company size have no effect on going concern audit opinion. Nagelkerke's R Square test shows the ability of the factors in this study to explain 63.1% of going-concern audit opinion, while 36.9% is explained by other factors outside the research model. The findings from this study are expected to help investors and other stakeholders to prevent losses if they invest in companies that have the potential to go bankrupt.

scholarly journals Factors Affecting Audit Report Lag (Empirical Studies on Manufacturing Listed Companies on the Indonesia Stock Exchange)

2021 ◽  
Vol 4 (1) ◽  
pp. 44-54
Author(s):  
Jacqueline Vania Jessica Jura ◽  
ML Denny Tewu
Keyword(s):  
Stock Exchange ◽  
Empirical Studies ◽  
Company Size ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Factors Affecting ◽  
Audit Opinion ◽  
Analysis Technique ◽  
Negative Effect ◽  
Auditor Reputation

The objective of this research is to determine whether Company Size, Company Age, Debt to Equity (DER), Return on Assets (ROA), Audit Opinion, and Auditor Reputation have a significant effect on Audit Report Lag. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in the period 2015 to 2019. The study used 93 companies as samples, a total of 490 samples as a whole. The data analysis technique used is multiple linear analysis and the results obtained are that the DER variable has a significant positive effect, while ROA and Audit Opinion have a negative effect on the audit report lag. The variables of company size and auditor reputation do not have a significant effect, while the variable of company age has a significant positive result but is contrary to the initial expectations.

scholarly journals Investigating the Relationship between the Type of Auditors and Disclosure Domain Quality among Pharmaceutical Companies Listed in Tehran Stock Exchange

2017 ◽  
Vol 5 (1) ◽  
pp. 45
Author(s):  
Alireza Hirad ◽  
Mahmoodreza Rakhshani
Keyword(s):  
Research Method ◽  
Stock Exchange ◽  
Accurate Information ◽  
Pharmaceutical Companies ◽  
Audit Report ◽  
Audit Process ◽  
Draft Report ◽  
Statistical Population ◽  
The Relationship

This research examines the relationship between the type of auditor's report and disclosure domain quality of the pharmaceutical companies listed in the Tehran Stock Exchange. The research method is inductive and is categorized in applied research according to research purpose. Research method and data analysis method is done using multiple correlation coefficient models and multiple regression. The statistical population of this study was all pharmaceutical companies listed in Tehran Stock Exchange during the years 2010-2014, which 488 companies have been selected. In this research, CD-ROMs and statistical software of Tehran Stock Exchange and other software available in Tehran stock exchange have been used to collect data in the present research. To document the results, statistical analysis and presenting final solutions, the researcher analyzed the questions and hypothesis using a statistical method as well as 7 Eviews software. The results of the main hypothesis of research show that there is a significant relationship between the type of audit report and disclosure domain quality in pharmaceutical companies. Given that disclosure domain quality of accounting information, documentation and clarification by the client after the issuance of the draft report and the client's attempt to justify the auditor are effective factors in disclosure domain quality, since increased disclosure quality has improved the financial reporting as well as the quality of the auditors' opinion. Increasing the quality can provide the necessary background for ease of implementation of the audit process, reduce audit risks, and ultimately reduce the auditors 'pessimism to the investigative body, each of which can more accurately report auditors' reports more qualitatively. The results also show that Audit Report has a higher degree of desirability to the extent that managers cooperate with the auditors in providing relevant and quality information and provide realistic and accurate information without any distortion or fraud and will show audit reports more qualitatively.

scholarly journals THE INFORMATION CONTENT OF AUDIT OPINION FOR USERS OF FINANCIAL STATEMENTS

2019 ◽  
Vol 4 (2) ◽  
pp. 91-101
Author(s):  
Andreea Claudia Crucean
Keyword(s):  
Financial Crises ◽  
Stock Exchange ◽  
Financial Statements ◽  
Review Literature ◽  
Important Conclusion ◽  
Audit Opinion ◽  
Reference Guide ◽  
Financial Audit ◽  
Audit Reports

In a market economy with frequent changes, audit is an area that can provide some stability at the economic and social lever, even if the economic and financial crises have questioned the audit work and led to a decrease in the trust of the intended users in the auditors work, leading to a distortion of the primary purpose of the financial audit. The article presents the relevant aspects of the evolution of audit reporting, especially on the underlying issues that expressing qualified opinions or disclaimer of opinion. The content of paper includes a review literature, national and international, and a case study that identified and analyzed the qualified opinions expressed in the auditor’s independent reports, after analysis the financial statements of companies listed on the Bucharest Stock Exchange for the period 2015, 2016 and 2017. The entities were grouped on 9 sectors of activity and researched for each industry if the auditors expressed an unqualified opinion or a modified opinion and if the auditor is part of a Big4 company or belongs to another auditor category. The reasons behind the modified opinions were analyzed and grouped according to the frequency of their appearance in the audit reports. The most important conclusion of the case study was that in all cases, the reasons that led to express modified opinions, was detailed in the auditor’s report, this being considered as a reference guide for the future auditor’s missions, as well as, a recommendation for improving the highlighted aspects.

Pengaruh Model Prediksi Kebangkrutan, Leverage, Audit Lag, Dan Ukuran Perusahaan Terhadap Opini Audit Going Concern

2013 ◽  
Vol 5 (1) ◽  
pp. 55-76
Author(s):  
Anastasia Paula Salean
Keyword(s):  
Prediction Model ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Bankruptcy Prediction ◽  
Annual Reports ◽  
Company Size ◽  
Financial Reports ◽  
Audit Opinion ◽  
Going Concern

The objective of this research is to examine the effect of bankruptcy prediction model, leverage, audit lag, and company size towards obtaining a going concern audit opinion.  The samples in this study are 11 companies listed in Indonesian Stock Exchange being classified as manufacturing sector in the year 2008-2011. The sample in this study determined based on purposive sampling. Data used in this study is a secondary data such as annual reports or financial reports.  The results from this study are (1) bankruptcy prediction model having no significant impact on obtaining a going concern audit opinion, (2) leverage having a significant impact on obtaining a going concern audit opinion, (3) audit lag leverage having a significant impact on obtaining a going concern audit opinion, (4) company size having no significant impact on obtaining a going concern audit opinion. Keywords: obtaining a going concern audit opinion, bankruptcy prediction model,leverage, audit lag, company size

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