Bank Officers’ Perceptions and Uses of Qualified Audit Reports

Nina Sormunen

Research output: Contribution to journalJournal articlepeer-review


Purpose – The purpose of this study is to provide insights into the perceptions and uses of qualified audit reports in financial statements of small- and medium-sized enterprises (SMEs). As there is a long-standing debate on the usefulness of auditor’s going-concern reports, this study aims to provide insights into the factors that affect how banks perceive and use going-concern reports.
Design/methodology/approach – Semi-structured interviews with bank officers were conducted.
Findings – The study findings demonstrated that bank officers considered that the going-concern report provided information, although they did not regard the information as being particularly useful. The main factors affecting the usefulness of information are use of other information sources and bank officers’ perceptions of auditing. Other factors are also presented and discussed in the current research paper.
Practical implications – Regulators have taken the action to improve the auditor’s reporting model, and the findings provided by this study are important because they provide a deeper understanding of the perceptions and uses of audit reports from smaller companies. The study also contributes knowledge about the role of audit reports in the context of SMEs finance.
Originality/value – This is one of the first studies to use a qualitative approach to examine factors that affect the use of going-concern reports.
Original languageEnglish
JournalQualitative Research in Accounting and Management
Issue number3
Pages (from-to)215-237
Publication statusPublished - 2014

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