The purpose of this thesis is to analyse the work of an auditor with regards to going concern assumption in a time of economic crisis. The thesis statement is: - How has the endorsement behavior been during the financial crisis on the going concern assumption and is the current regulations and laws sufficient? Going concern assumption has in recent years gained more and more attention, which has been in step with the current economic crisis with liquidity shortages and recession in most countries. The crisis has led to far more companies than usual may be critical to whether it is justified to submit the annual report on the condition of continued operation, and information in the annual report, for example, liquidity risks and the company's financial condition or uncertainties related to the going concern basis is sufficient for the annual report to give a true and fair view. We have selected 243 companies that went bankrupt within 12 months from the balance date and made thoroughly review of their financial statements and their audit reports. Management and auditors must assess the going concern criteria for the period relevant to the business and minimum of 12 months from the balance date. Unfortunately all our chosen companies went bankrupt within this time frame, which indicates that auditors did not get the appropriate and sufficient evidence for the going concern criteria. Auditors are the representative for the public and the audit report is the quality sign and assurance from auditors. The audit report is the auditor’s communication line to the public, which on the basis of the financial statements and audit report, will take financial decisions upon it. Our analysis have shown that the registered and state authorized public accountant, that both have been poor on their audit reports. In spite of the extensive regulatory, the auditor still commit various types of errors in its reporting, which can affect the readers trust in auditor and the auditors creditability.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||149|