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Audit effectiveness preceding bankruptcy in UK financial institutions
Resource type
Authors/contributors
- Malgwi, C.A. (Author)
- Emenyonu, E.N. (Author)
Title
Audit effectiveness preceding bankruptcy in UK financial institutions
Abstract
This study investigates audit effectiveness (or the lack thereof) of audit opinions issued by auditors preceding company bankruptcies. Data from all 26 bankrupt UK financial institutions were used to determine if auditor appropriately issued opinions other than unqualified, as signs of non-going concern determine any differences in audit-opinion effectiveness between international and domestic audit firms. Results show that unqualified opinions issued was significantly higher than other opinions prior to bankruptcy. While international audit firms were less likely to issue unqualified opinions than their domestic counterparts no firm issued adverse or disclaimer of opinions in any given year, despite serious warning signals from return on assets (ROA), return on equity (ROE) and current ratios. © 2004 Inderscience Enterprises Ltd.
Publication
International Journal of Accounting, Auditing and Performance Evaluation
Date
2004
Volume
1
Issue
4
Pages
503-518
Journal Abbr
Int. J. Account. Audit. Perform. Eval.
Citation Key
malgwiAuditEffectivenessPreceding2004
ISSN
17408008 (ISSN)
Archive
Scopus
Language
English
Extra
2 citations (Crossref) [2023-10-31]
Citation
Malgwi, C. A., & Emenyonu, E. N. (2004). Audit effectiveness preceding bankruptcy in UK financial institutions. International Journal of Accounting, Auditing and Performance Evaluation, 1(4), 503–518. Scopus. https://doi.org/10.1504/IJAAPE.2004.006359
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