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 Review, 6(1), 40-52.
Figures
Keywords
- Auditing
- Insolvency
- Z score
- Ratios
Palabras clave
- Auditoría
- Insolvencia
- Z score
- Ratios
Share this article
Related Posts
Article 3, Volume 8 Issue 1
New economic-business paradigm: The cryptocurrency and the tokenization of the economy. Monetary and financial revolution. The Blockchain, as the ultimate evolution of the accounting book Author José Daniel Barquero Cabrero – (ESERP-Abertis Observatory, Spain) Mario Rioboo – (ESERP-Abertis Observatory, Spain) DOI: 10.26595/eamr.2014.8.1.3 Download PDF View HTML Received November 23, 2020; accepted November 10, 2021. Abstract
Article 2, Volume 8 Issue 1
The City of São Paulo in the Context of a Sanctuary City from a Public Governance Perspective Author Maxwel Martins da Silva – (HECSA – MPGC – Center University FMU, São Paulo, SP, Brazil) Marcus Vinicius Moreira Zittei – (HECSA – MPGC – Center University FMU, São Paulo, SP, Brazil) Celso Machado Júnior – (PPGA
Article 1, Volume 8 Issue 1
DAX Companies in 2019, Financial Performance and Their Women Quota on Supervisory and Management Boards Author Bettina Binder – (Hochschule Pforzheim) DOI: 10.26595/eamr.2014.8.1.1 Download PDF View HTML Received September 27, 2021; accepted November 29, 2021. Abstract English Before the Covid-19 pandemic in German 30-DAX companies the women quota in supervisory boards and management boards increased
