The ability of audit reports to predict business failures
The focus of this report is on the predictive ability of audit reports. We studied a sample of 50 failed companies for the period 1991-1992 to determine the extent and type of audit qualification they received. The study reveals that the audit reports had a low predictive abilit...
Saved in:
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2014
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/58586 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | The focus of this report is on the predictive ability of audit reports. We studied a
sample of 50 failed companies for the period 1991-1992 to determine the extent and
type of audit qualification they received. The study reveals that the audit reports had a
low predictive ability in the going concern issue since only 38% of the companies
studied had going concern qualifications.
In view of this information, the report explores the factors that might have contributed
to this wide disparity. The report closes with suggestions to bridge the gap. |
|---|