Bankruptcies, Audit Reports, and the Reform Act

2001 ◽  
Vol 20 (1) ◽  
pp. 187-195 ◽  
Author(s):  
Marshall A. Geiger ◽  
K. Raghunandan
Keyword(s):  
Publicly Traded ◽  
Public Accounting ◽  
Securities Litigation ◽  
Publicly Traded Companies ◽  
The Public ◽  
Going Concern ◽  
Reporting Requirements ◽  
Potential Impact ◽  
Auditor Reporting ◽  
Audit Reports

The Private Securities Litigation Reform Act (Reform Act) was enacted as law in 1995 and represents a major victory for the public accounting profession. Since audit reporting for publicly traded companies that enter bankruptcy continues to be of interest to legislators and the public, the Reform Act also includes audit reporting requirements regarding the auditor's assessments of a company's ability to continue as a going concern. This study examines the potential impact of the Reform Act on auditor reporting by examining audit reports for 383 bankrupt companies during the 1991–1998 period. The results indicate that, after controlling for financial stress, company size, default status, audit reporting lag and bankruptcy filing lag, auditors were less likely to have issued prior going-concern modified audit reports for bankrupt companies after the Reform Act.

scholarly journals Conflict Minerals Disclosures: Reporting Requirements and Implications for Auditing

2015 ◽  
Vol 10 (1) ◽  
pp. A1-A23 ◽  
Author(s):  
Jomo Sankara ◽  
Deborah L. Lindberg ◽  
Khalid A. Razaki
Keyword(s):  
Democratic Republic ◽  
Publicly Traded ◽  
Wall Street ◽  
Publicly Traded Companies ◽  
Conflict Minerals ◽  
Consumer Protection Act ◽  
Reporting Requirements ◽  
Disclosure Requirements ◽  
Reporting Requirement ◽  
Republic Of The Congo

SUMMARY Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) created a reporting requirement for publicly traded companies that manufacture products using “conflict minerals” from the Democratic Republic of the Congo (DRC) or adjoining countries. Under certain circumstances, companies must file a Conflict Minerals Report (CMR) in addition to a Specialized Disclosure Report (Form SD). Companies that claim their products are free of conflict minerals from the DRC must have an audit of their CMR. We investigate the extent to which companies have complied with the new disclosure requirements as well as the current and future auditing implications.

scholarly journals Independent Audits of Conflict Minerals Reports

2013 ◽  
Vol 7 (2) ◽  
pp. A24-A32 ◽  
Author(s):  
David N. Herda ◽  
Herbert W. Snyder
Keyword(s):  
Central Africa ◽  
Securities And Exchange Commission ◽  
Publicly Traded ◽  
Human Rights Abuses ◽  
Publicly Traded Companies ◽  
Conflict Minerals ◽  
Audit Firms ◽  
Final Rule ◽  
Audit Reports ◽  
Corporate Social

SUMMARY There has been an increasing international focus on “conflict minerals,” which are sourced from mines in Central Africa and believed to benefit armed groups that engage in serious human rights abuses. In August 2012, the U.S. Securities and Exchange Commission (SEC 2012) issued a final rule (Release No. 34-67716) related to implementing new disclosures required by the Dodd-Frank Act that are aimed at dissuading publicly-traded companies from engaging in trade that supports conflict minerals. Beginning in 2014, many publicly traded companies will be required to issue Conflict Minerals Reports, and have the reports independently assured. For the first time, there is an SEC audit requirement for corporate social responsibility information. Significant uncertainty surrounds the nature of the requisite audit procedures and the form and content of the audit reports themselves. For example, issuers have the option of engaging auditors for either an attestation engagement or a performance audit. We summarize the SEC's final rule, with particular focus on the audit requirement, and discuss some challenges that audit firms face.

scholarly journals Audit Delay Analysis to Support the Effectiveness of Company’s Financial Reporting on Manufacturing Companies Listed On The Indonesia Stock Exchange

2021 ◽  
Vol 6 (1) ◽  
pp. 160
Author(s):  
Tjahjani Murdijaningsih ◽  
Siti Muntahanah
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Public Accounting ◽  
Accounting Firm ◽  
The Public ◽  
Negative Effect ◽  
The Right ◽  
Audit Reports

Every company listed on the Indonesia Stock Exchange is required to submit financial reports periodically. The financial statements shall be submitted no later than the end of the third month from the end date of the financial year. In reality, not all companies submit the right reports on time because of the audit reports, so that the company's financial reporting is not effective. Delays in financial reporting are closely related to audit delays. This study aims to analyze the factors that affect the time spent in auditing financial statements. The sample in this study were 15 real estate and property industrial companies listed on the Indonesia Stock Exchange for the period 2013-2017. Determination of the sample in this study using the purposive sapling method. The analysis used is multiple regression analysis. The results showed that company size had no significant effect on audit delay. Meanwhile, profitability has a negative effect and the size of the public accounting firm has a significant positive effect on audit delay. The size of the company cannot determine the audit of the financial statements to improve the accuracy of the submission of financial statements. What must be paid more attention is the level of profitability and the public accounting firm that will be used.

scholarly journals Predicting Audit Opinions Evidence From The Athens Stock Exchange

2011 ◽  
Vol 27 (4) ◽  
pp. 53 ◽  
Author(s):  
Anastasia Maggina ◽  
Angelos A. Tsaklanganos
Keyword(s):  
Stock Exchange ◽  
Early Warning Systems ◽  
Business Environment ◽  
Accounting System ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Going Concern ◽  
Contingent Liabilities ◽  
Audit Opinions ◽  
Athens Stock Exchange

<p>The purpose of this study is to provide evidence drawn from publicly traded companies in Greece as far as the predictability of going-concern opinions, and other business situations (problem companies, tax contingent liabilities) based on a transition from a tax-driven accounting system which is characterized by a stakeholder (debtholder) orientation to shareholder oriented and independent of tax reporting considerations after the adoption of IFRS. This study examines companies listed in the Athens Stock Exchange to determine whether the findings with regard to the prediction of troubled companies, going-concern audit opinions and tax contingent liabilities are robust in a different accounting system than that in prior studies. We employ discriminant analysis and a logit specification to test our models. Results indicate that more noticeably going-concern audit opinions can be predicted with rates ranging from 96.7% to 98.7%.</p><p>Research findings are subject to limitations since they are drawn from publicly traded companies only. The selection of models that better fits to the Greek data provides additional evidence to the existing literature not only in so far as the statistical techniques but also in respect to the business environment (after the adoption of IFRS). These models can act as early warning systems in an effort to avoid further bankruptcies or liquidations or even to prevent window dressing phenomena.</p>

scholarly journals Exploring Changing Requirements of Financial Statement Audit Reports via a Morphogenetic Approach

2021 ◽  
Vol 15 (2) ◽  
pp. 38-55
Author(s):  
Ying Deng ◽  
Graham Bowrey ◽  
Greg Jones
Keyword(s):  
Financial Statement ◽  
Public Accounting ◽  
Accounting Firms ◽  
The Public ◽  
Financial Statement Audit ◽  
Audit Regulation ◽  
Financial Audit ◽  
Proposed Regulation ◽  
Audit Reports ◽  
The Impact

There has been an ongoing concern with the quality of financial audit reports issued by registered public accounting firms in relation to financial accountability and transparency of the financial statements. In July 2009 the Public Accounting Oversight Board (PCAOB) released a concept paper outlining changes to the requirements of financial audit activities such as the inclusion of the engagement partner’s signature on the financial audit reports. The aim of these new requirements was to improve the accountability of engagement partners as well as enhance the perception of transparency of the audit reports. However, the contribution and effectiveness of these requirements to improve accountability and transparency of audit reports for various stakeholders relying on the audited financial information is questionable. This study explores the impact and effectiveness of changes to auditing regulation and processes through the application of Archer’s (1995) morphogenetic approach which is based on social conditioning, social interaction, and social elaboration where the structural influences provides the environment for agents to differentiate themselves. In addition, this study demonstrates how proposed regulation changes mould the qualities of audit regulation, the profession and the auditor whose perspectives deserved to be noticed from the dominant constituencies structured by the propositions of a morphogenetic analysis.

scholarly journals PENGARUH KINERJA KEUANGAN, DEBT DEFAULT DAN REPUTASI KANTOR AKUNTAN PUBLIK TERHADAP PENERIMAAN OPINI AUDIT GOING CONCERN

2017 ◽  
Vol 5 (2) ◽  
Author(s):  
Putri Ragillia Susanto ◽  
Siti Zubaidah
Keyword(s):  
Financial Performance ◽  
Quantitative Approach ◽  
Analysis Tool ◽  
Public Accounting ◽  
Audit Opinion ◽  
Accounting Firm ◽  
The Public ◽  
Going Concern ◽  
Debt Default ◽  
Positive Effect

This study aims to examine the effect of financial performance, debt default and reputation ofpublic accounting firm on acceptance of going concern audit opinion. The method of this researchis a quantitative approach and SPSS as an analysis tool. The results showed that the financialperformance proxied by the calculation of financial ratios has no significant and negative effecton the acceptance of going concern audit opinion. Second, the company’s default debt has nosignificant and positive effect on the acceptance of going concern audit opinion. Finally, thereputation of the public accounting firm proxied at the scale of the public accounting firm has nosignificant and positive effect on the acceptance of going concern audit opinion.Ke ywords: Debt Default, Financial Performance, Going Concern, Reputation of Public Accounting Firm

Going-Concern Opinions in the “New” Legal Environment

2002 ◽  
Vol 16 (1) ◽  
pp. 17-26 ◽  
Author(s):  
Marshall A. Geiger ◽  
K. Raghunandan
Keyword(s):  
Financial Stress ◽  
Securities And Exchange Commission ◽  
Company Size ◽  
Legal Environment ◽  
Going Concern ◽  
Potential Impact ◽  
Audit Reports

The Securities and Exchange Commission (SEC 2000) recently asserted that the litigation environment facing auditors has changed significantly since 1994, and that the reduced threat of litigation can influence auditor behavior. This study examines the potential impact of the “new” legal environment described by the SEC by examining the audit reports on 1,871 companies under financial stress during the years 1992–93, 1996–97, and 1999–2000. We find that after controlling for financial stress, company size, and default status, going-concern audit reports were less likely (1) in 1996–97 than in 1992–93, and (2) in 1999–2000 than in 1996–97. Our results indicate that changes in the litigation environment are associated with the issuance of fewer going-concern-modified opinions to stressed companies in recent years. This finding is consistent with the SEC's claim that auditors' behavior in recent years has been influenced by reduced litigation pressures.

scholarly journals “PENSI BINTEY”: PENGARUH IMPLEMENTASI BIG DATA ANALYTICS TERHADAP TERJADINYA AUDIT DELAY

2021 ◽  
Vol 16 (2) ◽  
pp. 109
Author(s):  
Nicholas Alexander Tunggal ◽  
Elliza Elliza
Keyword(s):  
Big Data ◽  
Data Analytics ◽  
Business Processes ◽  
Big Data Analytics ◽  
Publicly Traded ◽  
Public Accounting ◽  
Accounting Firms ◽  
Publicly Traded Companies ◽  
Selection For ◽  
Operational Activities

ABSTRACT Audit delay states the complexity of transactions that occur within a business entity. Many companies have tried to find ways to avoid audit delay conditions in their business processes, one of which is by implementing big data analytics in the company's operational activities. The purpose of this study was to determine the effect of implementing big data analytics on audit delay and several other factors such as company size, company age, company profit and loss, auditor opinion, and reputation of public accounting firms. This study will use empirical data based on publicly traded companies with the 2017-2019 period. The selection for the 2017-2019 period is based on the hypothesis that many companies are starting to apply big data analytics in carrying out their business processes. Big data analytics is projected based on disclosures made by companies. Based on the results of logistic regression analysis, big data analysis has no significant effect. This suggests that the accountant/auditor should consider implementing big data analytics because of its complexity.Keywords: audit delay, big data analytics ABSTRAK Audit delay mengindikasikan adanya kompleksitas transaksi yang terjadi dalam suatu entitas bisnis. Banyak perusahaan yang telah mencoba mencari cara agar terhindar dari kondisi audit delay dalam proses bisnisnya, salah satunya dengan mengimplementasikan big data analytics dalam kegiatan operasional perusahaan. Tujuan penelitian ini adalah untuk mengetahui pengaruh implementasi big dataanalytics terhadap audit delay serta beberapa faktor lainnya seperti ukuran perusahaan, umur perusahaan, laba rugi perusahaan, opini auditor, dan juga reputasi kantor akuntan publik. Penelitian ini akan menggunakan data empiris berdasarkan perusahaan go public dengan periode 2017-2019. Pemilihan periode 2017-2019 didasarkan pada mulai banyaknya perusahaan yang menerapkan big data analytics dalam menjalankan proses bisnisnya. Big data analytics diproyeksikan berdasarkan pengungkapan yang dilakukan perusahaan. Berdasarkan hasil analisis regresi logistik, big data analytics tidak berpengaruh signifikan. Hal ini menunjukkan bahwa akuntan/auditor harus mempertimbangkan pengimplementasian big data analytics karena terkait dengan kompleksitasnya.Kata kunci: audit delay, big data analytics

Faktor Determinan Opini Audit Going Concern

Liquidity ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 27-35
Author(s):  
Rafrini Amyulianthy
Keyword(s):  
Stock Exchange ◽  
Bankruptcy Prediction ◽  
Public Accounting ◽  
Audit Opinion ◽  
Logistic Regression Models ◽  
The Public ◽  
Going Concern ◽  
Financial Condition ◽  
Negative Effect ◽  
Positive Effect

This research purpose to determine the effect of financial condition of company, the size of audited company, the company's growth and reputation of the Public Accounting Firm to going-concern audit opinion on the company's listed on Indonesia Stock Exchange. Companies sample in this research are industrial trade, services and investment covered years 2007-2012 which 20 companies with. Hypothesis tested by using logistic regression models. The test results showed that the financial conditions using by bankruptcy prediction model Altman Z - Score Revised had positive effect but not significant to going-concern audit opinion. The size of the company which is using by log total assets had negative effect and significant to goingconcern audit opinion. Meanwhile the company's growth had positive effect but not significant to going-concern audit opinion. The public accounting firm's reputation using by the scale of the auditor (affiliated with the Big Four KAP), positive effect but not significant to goingconcern audit opinion.

scholarly journals PENGARUH KONDISI KEUANGAN PERUSAHAAN, UKURAN PERUSAHAAN, PERTUMBUHAN PERUSAHAAN DAN REPUTASI KAP TERHADAP PENERIMAAN OPINI AUDIT GOING CONCERN PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2015-2017

2019 ◽  
Vol 4 (2) ◽  
pp. 286-303
Author(s):  
Rivaldi Akbar ◽  
Ridwan Ridwan
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Total Sample ◽  
Analysis Tool ◽  
Public Accounting ◽  
Audit Opinion ◽  
Accounting Firm ◽  
The Public ◽  
Going Concern ◽  
Going Concern Opinion

This study aims to examine the effect of financial distress, size firms, growth companies, and reputation public accounting firm on acceptance of going concern opinion. The method of this research is a quantitativ approach and SPSS as an analysis tool. Object under study is a mining companies listed on Indonesia Stock Exchange during the periode 2015-2017,as many 33 companies for 3 years with 99 total sample. Testing is done by using logistic regresion analysis by using SPSS version 25.The result showed that the financial distress proxied by the calculation of altman modification model has no significant on the acceptance of going concern audit opinion. Second, the firm size has significant and positive effect on the acceptance of going concern opinion. Third, the growth companies has significant and negative effect on the acceptance of going concern opinion.  Finally, the reputation of the public accounting firm proxied at the scale of the public accounting firm has no significant effect on the acceptance of going concern audit opinion

Sign in / Sign up

Export Citation Format

Share Document