Trusting/Distrusting Auditors’ Opinions

Waymond Rodgers, Andrés Guiral and José A. Gonzalo
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Waymond Rodgers: Department of Accounting and Information Systems, University of Texas, El Paso, TX 79968, USA
Andrés Guiral: School of Business, Yonsei University, Seoul 03722, Korea
José A. Gonzalo: Facultad de Ciencias Económicas, Empresariales y Turismo, Universidad de Alcalá, Plaza de la Victoria 3, Alcalá de Henares, 28802 Madrid, Spain

Sustainability, 2019, vol. 11, issue 6, 1-16

Abstract: Trust relations are essential for effective interchanges in the financial markets. Investors (trustors), as well as other market participants, can only trust financial markets if they trust their auditors (trustees). In particular, the auditors’ assessment of the client’s financial condition and its ability to continue as a going concern is paramount to improving social capital and maintaining sustainable financial markets. Research shows that a going concern opinion may have immediate consequences for both the auditing profession and financial statement users. We use the Throughput Model to illustrate how different trust positions are aligned with a particular auditor’s decision-making pathway to enhance trust, distrust or no trust from the point of view of investors’ and creditors’.

Keywords: trust; social capital; audit report; sustainable financial markets (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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