Business, Management and Accounting
8 years ago

Auditor independence at risk: New audits found to reduce going concern opinions

2 views
The provision of non-audit services, audit partner tenure, a new audit and auditor independence: Evidence from going concern opinions
Mohd Raime Ramlan, Rohami Shafie, Dzarfan Abdul Kadir

Paper Summary

This study looked at how different factors like non-audit services, how long an auditor has been working with a client, and if it's a new audit can affect auditors' decisions to issue a going concern opinion. They used a scientific method called logistic regression analysis to analyze the data. The results showed that when there is a new audit, there's a lower chance of an auditor giving a going concern opinion. However, there was no significant impact from non-audit services or how long the auditor had been working with the client. This suggests that the newness of an audit can influence auditors' independence.

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