Auditor Going Concern Reporting: A Review of Global Research and Future Research Opportunities

The auditor's decision to issue a going concern opinion (GCO) is a complex and multi-layered one, facing a great deal of tension. This monograph reviews and synthesizes 182 recent GCO studies that have appeared since 2013 through 2019, categorizing them into three broad areas: determinants, accuracy, and consequences. It also presents a discussion of opportunities for future research, including issues created or exacerbated by the global COVID-19 pandemic. The examination of GCO research is extremely timely given the financial and business disruption caused by the pandemic.

Format: Hardback
Length: 168 pages
Publication date: 10 June 2021
Publisher: Taylor & Francis Ltd

One of the most difficult tasks for external auditors is to provide reporting on uncertainties related to the going concern. Business owners, market participants, and audit regulators all want to be alerted to potential business failures as soon as possible. However, companies often do not appreciate audit opinions that raise questions about their future viability. As a result, the decision to issue a going concern opinion (GCO) is a complex and multifaceted process that is subject to significant tension.

Academic researchers have extensively studied various aspects of the decision to issue a GCO in this rich context. This monograph reviews and synthesizes 182 recent GCO studies that have been published since the last significant review in 2013 until the end of 2019. The authors categorize these studies into three broad areas: determinants, accuracy, and consequences.

To facilitate the synthesis, the authors summarize the details of each study in several user-friendly tables. After discussing and synthesizing the research, they present a discussion of opportunities for future research, particularly in light of the global COVID-19 pandemic.

This monograph will be valuable to researchers interested in exploring the area of auditor responsibility. It will also be of interest to auditing firms and individual practitioners who want to understand what academic research has examined and discovered regarding this challenging aspect of audit practice. Auditing standard-setters and regulators will find it of interest as the authors review numerous studies examining issues related to audit policy and regulation, and their effects on GCO decisions.

The examination of GCO research is particularly timely given the financial and business disruptions caused by the pandemic.

Weight: 418g
Dimension: 160 x 241 x 17 (mm)
ISBN-13: 9780367649487