Significant Doubt About The Going Concern Assumption In Audit

Socol, Adela

doi:10.29302/oeconomica.2010.12.1.29

Cited by 4 publications

(2 citation statements)

References 5 publications

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“…Denetçiler süreklilik ilkesini değerlendirirken mesleki muhakemelerini kullanacaklardır. Denetçi, süreklilikle ilgili mesleki muhakemesini aşağıdaki 4 süreç için kullanacaktır (Socol, 2010).…”

Section: Süreklilikle Ilgili şüPhelerunclassified

“…Denetçi, ek denetim prosedürleri uygulayarak önemli bir belirsizliğin mevcut olup olmadığını belirlemek için yeterli ve uygun denetim kanıtı elde eder (Enofe, Mgbame, Otuya & Ovie, 2013). Bu prosedürler şunları içerecektir (Socol, 2010;Nogler, 2008 Denetçilerle ilgili denetim prosedürleri aşağıdakileri içerebilir (UDS 570, paragraf A15):…”

Section: Denetim Teknikleriunclassified

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İşletmeni̇n Sürekli̇li̇ği̇ Varsayiminin Denetçi̇ Raporuna Etki̇si̇

Celayir

2022

Journal of Research in Business

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Financial statements issued by the entities have a great impact on the trust they build. Especially after the recent financial crises, and accounting and auditing scandals, the entity’s ability to continue as a going concern has become much more important for the investors. Also with regards to independent audit, the concept of going concern is related with the investor perspective more, compared to other perspectives. In this context, when independent auditors are examining the entity’s ability to continue as going concern, they emphasize on issues of continuity that may affect the decisions of interested parties, major ones being the investors. International Standard on Auditing 570 – Going Concern (ISA 570) was issued with the purpose to ensure that the interested parties obtain accurate and reliable information on the financial statements. With the standard of ISA 570, responsibilities have been imposed on independent auditors, which require that they evaluate the adverse events and conditions with respect to the entity’s ability to continue as going concern, and that they provide accurate information to the users of information. The latest amendments in the reporting standards aimed to expand the auditing reports, and following these, additional amendments were issued about the going concern concept, imposing additional responsibilities for both the management and the auditors. Consequently, the scope of the audit reports has been expanded. According to these new arrangements; i) the audit report will now include more explanations on the auditor’s and the management’s responsibilities on the entity’s ability to continue as going concern, ii) the audit report will now include a separate section in case there is a significant uncertainty on the continuity of the entity, iii) if there is not a significant uncertainty on the continuity of the entity, but there are indicators that may endanger the entity’s continuity, the audit report will now include explanations of these. Unless the management intends to liquidate the entity, intends to cease the business activities of the entity, or unless the management is obliged to act as such, the going concern assumption should prevail. In due course, the auditor shall seek to obtain the sufficient and appropriate audit evidence about the appropriateness of management’s use of the going concern assumption, and shall decide whether it is appropriate to make this assumption. The fundamental responsibility of the independent auditor is to detect the cases which may create significant uncertainties and serious doubts about the entity’s ability to continue as going concern (if any), and to report these in line with the standards. Within this scope, all activities carried out throughout the independent audit process shall be carried out considering the probability of the occurrence of cases which may risk the continuity of the entity. This paper examines the auditor’s evaluations in relation to the going concern assumption based on ISA 570, and the reflection of these evaluations to the auditor’s opinion.

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Section: Süreklilikle Ilgili şüPhelerunclassified

Section: Denetim Teknikleriunclassified

İşletmeni̇n Sürekli̇li̇ği̇ Varsayiminin Denetçi̇ Raporuna Etki̇si̇

Celayir

2022

Journal of Research in Business

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COVID-19 effects on the going concern audit opinion in MENA region: Text mining approach

Feghali

Hallak

Moussa

2022

RGC

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The COVID-19 pandemic has affected the economic sector, especially the audit task that requires the physical intervention of the auditor. The aim of this paper is to study the effect of COVID-19 on audit opinion in the MENA region through a novel text mining approach. The collected data included 83 bank reports from 377 branches in 14 MENA countries. The text mining approach was employed using Python software via corpus creation, tokenization, stop words removal, stemming, and feature selection. Afterwards, a univariate analysis was performed to delineate the variables that are significantly associated with COVID-19, followed by a linear regression model quantifying the relationship of the variables. The results of the text mining process led to the creation of a dictionary composed of 8000 words. After the text mining steps, 10 variables were obtained. The univariate analysis showed that 3 out of 10 extracted variables were associated with COVID-19 and a linear regression equation was accordingly generated. Our research revealed that, in the MENA region, the COVID-19 pandemic led to an increase in the audit workload and risk assessment, yielding an overall unfavorable audit opinion. Finally, the authors used similar techniques to the research of Wei, Li, Zhu, and Li (2019) and Boskou, Kirkos, and Spathis (2018).

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Auditors’ Responsibility in Assessing Going Concern Assumption Affected by Covid-19

Đorđević

Đukić

2021

Economic Themes

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The Covid-19 pandemic and the measures introduced to prevent its further spread have undoubtedly led to significant business uncertainties regarding the going concern principle. Not only has the global economy experienced negative effects of the pandemic, but a number of professions as well, including auditing. With their significant responsibility in assessing the going concern, auditors face a number of challenges. The aim of this paper is to point out the need for more extensive consideration of auditors in assessing the going concern, as well as the challenges auditors face in a pandemic and the ways in which they overcome these limitations.

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Significant Doubt About The Going Concern Assumption In Audit

Cited by 4 publications

References 5 publications

İşletmeni̇n Sürekli̇li̇ği̇ Varsayiminin Denetçi̇ Raporuna Etki̇si̇

İşletmeni̇n Sürekli̇li̇ği̇ Varsayiminin Denetçi̇ Raporuna Etki̇si̇

COVID-19 effects on the going concern audit opinion in MENA region: Text mining approach

Auditors’ Responsibility in Assessing Going Concern Assumption Affected by Covid-19

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