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A ddressing I ssues R elating T o G oing ‐G ongern A udit Q ualifications A nd C orporate F ailure
Author(s) -
Green Wendy
Publication year - 1995
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.1995.tb00378.x
Subject(s) - accounting , audit , business , going concern , order (exchange) , annual report , auditor's report , finance
This study examines the incidence of going‐concern audit qualifications and of corporate failure for Australian publicly listed companies over the period 1980‐90. The analysis includes a review of annual reports for companies that attracted going‐concern qualifications but did not subsequently fail, in order to identify potential indicators of survival. The differences between the indicators noted for failed companies that had their last accounts qualified on the basis of going concern, and those of failed companies not qualified, was also examined. Other issues of interest include a comparison of going‐concern qualifications by Big Eight (Six) and other audit firms, and the extent and location of disclosure of going‐concern problems in the annual report.