Auditor's Uncertainty About Going Concern – Predictor of Insolvency Risk

Hategan Camelia Daniela () and Predictor of Insolvency Risk ()
Additional contact information
Hategan Camelia Daniela: West University of Timisoara
Predictor of Insolvency Risk: West University of Timisoara

Ovidius University Annals, Economic Sciences Series, 2018, vol. XVIII, issue 2, 605-610

Abstract: The primary indications of some uncertainties about the going concern of an entity can be obtained by investors and the general public in the financial statements and in the audit report. The present paper analyzes the going concern principle based on the regulations in the field of financial reporting and on the basis of the regulations in the field of international, European and national auditing. The financial statements must provide a faithful image of the performance and financial position of the entities, and the auditors must to express an opinion on compliance with all accounting principles. The study showed that in most cases the auditors had uncertainties about the going concern that led to insolvency of companies, and the main underlying factors were the reported losses, negative equity, the business history.

Keywords: going concern; auditor’s opinion; auditor’s report; financial statements; insolvency risk; uncertainty (search for similar items in EconPapers)
JEL-codes: M40 M42 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2019/02/9-4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xviii:y:2018:i:2:p:605-610

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().