Auditor characteristics and the issuance of going concern opinion
Auditor should issue Going Concern audit opinion (GC opinion) when there is doubt about the ability of client to continue operation in the next one year, according to International Standard on Auditing 570 (ISA 570). However, in the context of Malaysia auditors tend to issue GC opinion to a small nu...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Medwell Journals
2016
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/55175/ http://psasir.upm.edu.my/id/eprint/55175/1/Auditor%20characteristics%20and%20the%20issuance%20of%20going%20concern%20opinion.pdf |
| _version_ | 1848852732992028672 |
|---|---|
| author | Osman, Mohammad Noor Hisham Turmin, Siti Zaidah Muhamad, Haslinah Hussain, Rasyiqah |
| author_facet | Osman, Mohammad Noor Hisham Turmin, Siti Zaidah Muhamad, Haslinah Hussain, Rasyiqah |
| author_sort | Osman, Mohammad Noor Hisham |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Auditor should issue Going Concern audit opinion (GC opinion) when there is doubt about the ability of client to continue operation in the next one year, according to International Standard on Auditing 570 (ISA 570). However, in the context of Malaysia auditors tend to issue GC opinion to a small number of financially distress companies only. This situation motivates this study to investigate the effect of three auditor characteristics namely specialization, switching and remuneration on the possibility of GC opinion issuance. The study found significant positive relationship between the amount of auditor remuneration and the issuance of GC opinion. This might be due to operational aspect of auditing as before auditors issue any non-unqualified opinion report they have to conduct additional substantive test, documentation and discussion and negotiation with clients. |
| first_indexed | 2025-11-15T10:42:46Z |
| format | Article |
| id | upm-55175 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:42:46Z |
| publishDate | 2016 |
| publisher | Medwell Journals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-551752017-12-08T06:20:31Z http://psasir.upm.edu.my/id/eprint/55175/ Auditor characteristics and the issuance of going concern opinion Osman, Mohammad Noor Hisham Turmin, Siti Zaidah Muhamad, Haslinah Hussain, Rasyiqah Auditor should issue Going Concern audit opinion (GC opinion) when there is doubt about the ability of client to continue operation in the next one year, according to International Standard on Auditing 570 (ISA 570). However, in the context of Malaysia auditors tend to issue GC opinion to a small number of financially distress companies only. This situation motivates this study to investigate the effect of three auditor characteristics namely specialization, switching and remuneration on the possibility of GC opinion issuance. The study found significant positive relationship between the amount of auditor remuneration and the issuance of GC opinion. This might be due to operational aspect of auditing as before auditors issue any non-unqualified opinion report they have to conduct additional substantive test, documentation and discussion and negotiation with clients. Medwell Journals 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/55175/1/Auditor%20characteristics%20and%20the%20issuance%20of%20going%20concern%20opinion.pdf Osman, Mohammad Noor Hisham and Turmin, Siti Zaidah and Muhamad, Haslinah and Hussain, Rasyiqah (2016) Auditor characteristics and the issuance of going concern opinion. International Business Management, 10 (17). pp. 3733-3738. ISSN 1993-5250 http://medwelljournals.com/journalhome.php?jid=1993-5250 |
| spellingShingle | Osman, Mohammad Noor Hisham Turmin, Siti Zaidah Muhamad, Haslinah Hussain, Rasyiqah Auditor characteristics and the issuance of going concern opinion |
| title | Auditor characteristics and the issuance of going concern opinion |
| title_full | Auditor characteristics and the issuance of going concern opinion |
| title_fullStr | Auditor characteristics and the issuance of going concern opinion |
| title_full_unstemmed | Auditor characteristics and the issuance of going concern opinion |
| title_short | Auditor characteristics and the issuance of going concern opinion |
| title_sort | auditor characteristics and the issuance of going concern opinion |
| url | http://psasir.upm.edu.my/id/eprint/55175/ http://psasir.upm.edu.my/id/eprint/55175/ http://psasir.upm.edu.my/id/eprint/55175/1/Auditor%20characteristics%20and%20the%20issuance%20of%20going%20concern%20opinion.pdf |