Going Concern: En analyse af i hvor høj grad der tages højde for den manglende revisionserklæring, når interessenter vurderer virksomheder, hvori revisionen er fravalgt

Katrine Jensen & Henrik Rugaard Petersen

Student thesis: Master thesis


Since 2006 Denmark has been taking advantage of the EU legal rules for exemptions on the mandatory audit for small and medium sized companies, and for the first time ever in Denmark, the amount of companies that have rejected an audit is higher than the amount of companies that are being audited.
Because trade, credit consulting, tax and duty payment is vastly based on accounting figures, which in the worst case scenario is not valid, this can have consequences for the Danish trade and community in general. The intend of this summary is, to enlighten the problems that companies, government and moneylenders are faced with, when an increasing amount of companies do not have their annual accounts revised.
Auditor’s opinion is the only way, that the accountant can make the users aware, when problems relating to going concern arises. As well as our intentions with this summary, is to in light how bookkeepers use the company’s year assessment for credit services, including which parts of the annual accounts is most useful for the bookkeeper.
The summary outlines a series of relevant theories within the areas: going concern, account endorsement and declaration possibilities and accountant reporting possibilities. The summary is based on accountancy class-b, concerning the small and medium sized companies, which represent the majority of the Danish Trade and Industry.
To get an insight in how the external stakeholders use the company’s annual accounts in connection with trade and credit allocation, we have posted questionnaires to a group of respondents consisting of company owners, bank employees, accountants, and other advisors. These respondents are specially selected, as it is our opinion that they are amongst the most important stakeholders in relation to the company’s annual accounts.
Apart from the questionnaire we supplemented with interviews with society of Danish accountants, FSR – Danske Revisorer; a money and credit institution, Arbejdernes Landsbank, and as a representant for the Danish Trading Industry, Dansk Industri. The intention with the interviews was to enlighten the subjective attitude to the increasing rejection of audit. At the same time it was our thesis, that the chosen interview subjects, had contrasting opinions to the increasing tendencies to companies rejection of audit It will appear from our questionnaire, that the respondents emphasizes the opinion from accountants very high, when accessing a company’s ability to going concern. In relation to this it indicates that more than half the respondents do not wish for further reductions in the accountancy area prospectively.
The thesis concludes that there is a general disagreement amongst stakeholders when it comes to determine when an audit is value adding for the companies. At the same time the stakeholders signify that audited accounts are given higher credibility.

Educations, (Graduate Programme) Final Thesis
Publication date2017
Number of pages193