Article 2, Volume 6 Issue 1

The risk of insolvency and the audit report

Author

Anna Ros – (UPF – Barcelona School of Management)

Alba Ruiz – (UPF – Barcelona School of Management)

Carles Rusiñol – (UPF – Barcelona School of Management)

Alexandre Valeriano – (UPF – Barcelona School of Management)

Received August 25, 2019; accepted September 27, 2019.

Abstract

When auditors detect that a company might have problems of insolvency, they have to inform about it with an emphasis paragraph where it is questioned whether it is appropriate to apply “the going concern principle”. This work analyses if auditors are effective in assessing the risk of insolvency and compares it with the Z score formula which applies the discriminant analysis to generate forecasts.

Cuando los auditores detectan que una empresa podría tener problemas de insolvencia, tienen que informar al respecto con un párrafo de énfasis donde se cuestiona si es apropiado aplicar “el principio de empresa en marcha”. Este trabajo analiza si los auditores son efectivos para evaluar el riesgo de insolvencia y lo compara con la fórmula de puntaje Z que aplica el análisis discriminante para generar pronósticos.

Citation

Ros, A., Ruiz, A., Rusiñol, C., & Valeriano, A. (2019). The Risk of Insolvency and the Audit Report. European Accounting and Management Review6(1), 40-52.

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Article 5, Volume 7 Issue 1

The Role of Awareness, Learning and Knowledge in Entrepreneurial and Firm Leadership Processes Author Neus Vila Brunet – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.1.5 Download PDF View HTML Received October 2, 2020; accepted December 9, 2020. Abstract English Scholars in recent years have urged researchers to shift from their traditional focus on specific characteristics of

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Article 4, Volume 7 Issue 1

Does an internship in Business Administration enhance professional competences? Author Ramon Bastida – (UPF Barcelona School of Management) Frederic Marimon – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.1.4 Download PDF View HTML Received April 26, 2020; accepted June 5, 2020. Abstract English The aim of this study was twofold. First, we want to determine which competences

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Article 3, Volume 7 Issue 1

Open Innovation in Times of Covid-19: The case of Project OxyGEN Author Giovanna Lara Burbano – (University of Girona) DOI: 10.26595/eamr.2014.7.1.3 Download PDF View HTML Received October 8, 2020; accepted December 9, 2020. Abstract English In the face of the health crisis unleashed by Covid-19, experts worldwide took on the challenge of designing a low-cost

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Article 1, Volume 3 Issue 2

Accounting ratio-based predictions: an analysis of the relationship between indicators of financial health and those of accounting manipulation

Author

Joan Llobet-Dalmases – (Universitat Oberta de Catalunya)

Dolors Plana-Erta – (Universitat Oberta de Catalunya)

Àngels Fitó-Bertran – (Universitat Oberta de Catalunya)

Received May 1, 2017; accepted May 29, 2017

Abstract

Against a backdrop of global accounting harmonization, financial information is required to be useful and trustworthy for investors and other users. This study contributes to establishing whether there is a relationship between the Z-score model for predicting financial distress and the Z Vladu model for predicting earnings manipulation. Both models discriminate between companies using financial statement ratios. Extracting data from the Sistema de Análisis de Balances Ibéricos (Iberian Accounts Analysis System, or SABI) database for medium-sized and large Spanish companies for the period 2005 to 2015, both summary indicators have been calculated and descriptive and bivariate analyses have been performed. The results show that there is a relationship between both indicators, albeit a weak one.

En un contexto de armonización contable global, se requiere que la información financiera sea útil y confiable para los inversores y otros usuarios. Este estudio contribuye a establecer si existe una relación entre el modelo Z-score para predecir dificultades financieras y el modelo Z Vladu para predecir la manipulación de ganancias. Ambos modelos discriminan entre compañías que usan índices de estados financieros. Extrayendo datos de la base de datos del Sistema de Análisis de Balances Ibéricos (SABI) para empresas españolas medianas y grandes para el período 2005 a 2015, se han calculado indicadores resumidos y se han realizado análisis descriptivos y bivariados. Los resultados muestran que existe una relación entre ambos indicadores, aunque sea débil.

Citation

Llobet-Dalmases, J., Plana, D., & Fito, M. (2017). Accounting ratio-based predictions: an analysis of the relationship between indicators of financial health and those of accounting manipulation. European Accounting and Management Review3(2).

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Article 5, Volume 7 Issue 1

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Article 4, Volume 7 Issue 1

Does an internship in Business Administration enhance professional competences? Author Ramon Bastida – (UPF Barcelona School of Management) Frederic Marimon – (Universitat Internacional de Catalunya) DOI: 10.26595/eamr.2014.7.1.4 Download PDF View HTML Received April 26, 2020; accepted June 5, 2020. Abstract English The aim of this study was twofold. First, we want to determine which competences

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Article 3, Volume 7 Issue 1

Open Innovation in Times of Covid-19: The case of Project OxyGEN Author Giovanna Lara Burbano – (University of Girona) DOI: 10.26595/eamr.2014.7.1.3 Download PDF View HTML Received October 8, 2020; accepted December 9, 2020. Abstract English In the face of the health crisis unleashed by Covid-19, experts worldwide took on the challenge of designing a low-cost

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