Impact of the Lebanese multidimensional crisis on audit processes and resources: implications for going concern assessments

Sandra Khalil

Managerial Auditing Journal, 2025, vol. 40, issue 3, 278-302

Abstract: Purpose - This study aims to examine auditors’ perceptions of the changes in audit processes, fees, salaries and trainings during the Lebanese multidimensional crisis. The aim is to understand how going concern assessments were affected by the distortions imposed by the crisis. Design/methodology/approach - Data was collected through a survey distributed among auditors at Big 4 audit firms in Lebanon during the crisis. The questionnaire, inspired by prior desk study research, aims to empirically assess auditors’ attitudes toward the variances in audit operations during the crisis and their implications on going concern assessments. This study uses the structural equation modeling (SEM) technique to develop and assess the research model. Findings - The findings reveal notable changes in audit processes, fees, salaries and training programs during the crisis. SEM results highlight the association between the crisis-driven changes in audit procedures, fees and salaries and the increased uncertainty in issuing going concern assessments. Practical implications - This study provides recommendations for both the auditing industry and regulatory bodies to ensure audit firms are prepared to face crises that might disrupt their work. Recommendations include the initiation of crisis management training programs, investments in technology solutions, the establishment of a protocol in response to crisis and the adoption of flexible yet reliable audit procedure to accommodate for the challenges of the crisis. Originality/value - The originality of this study emanates from its adoption of a novel survey to assess a conceptual model that has not been empirically tested in earlier studies. The model examines changes in audit operations during the Lebanese crisis and their implications on going concern assessments, a context that has received little attention in the literature.

Keywords: Going concern assessments; Audit processes; Audit staff salaries; Professional development programs; Multidimensional crisis; Lebanon (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-08-2024-4442

DOI: 10.1108/MAJ-08-2024-4442

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