engleski

The relation between going-concern opinions and the auditor's size

In this study we analyze the auditor’s propensity to issue going-concern opinion to financially troubled but non-bankrupt companies in Croatia, investigating whether there is a significant difference in issuing such an opinion between Big Four and non-Big Four audit firms. Our sample of audited firms consists of large manufacturing companies which had net losses in the period from 2011 to 2014. The existing studies from various countries and conducted for different time periods do not show unique results, which are obviously time and space specific. Currently, after the period of accounting scandals related to big audit firms, it is assumed that Big Four are more conservative related to issuing going concern opinion. In this study we test this assumption for Croatia.

audit ; going-concern opinion ; Big Four

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