Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7356979 | Journal of Contemporary Accounting & Economics | 2018 | 44 Pages |
Abstract
Motivated by concerns that one of the reasons for the Global Financial Crisis (GFC) is poor quality auditing, this study examines the accuracy of going concern modifications for a sample of United States (U.S.) companies in the pre-GFC (2005-2006), GFC (2007-2008), and post-GFC (2009-2010) periods. The results show that the type I misclassification is lower during the GFC but not different in the post-GFC period compared with the pre-GFC period. The type II misclassification is not significantly different in the GFC and post-GFC periods compared with the pre-GFC period. Additionally, the results suggest that non-Big 4 auditors, compared with Big 4 auditors, have become more conservative on clients' going concern problems in the post-GFC period, which reduces their type II misclassification.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business, Management and Accounting (General)
Authors
Kanyarat (Lek) Sanoran,