Revisors rolle i relation til vurderingen af going concern: En undersøgelse af udvalgte konkursramte selskaber i bygge- og anlægsbranchen

Runi Joensen

Student thesis: Master thesis


After the financial crisis many bank and companies went bankruptcy, which led to an increased focus on the auditor’s assessment of and reporting on going concern. Especially in the cases were companies went bankruptcy with an unmodified audit opinion. The thesis tries to examine to what extent the auditor reasonably can be expected to be able to identify conditions that can challenge the going concern assumption and thereby making the user aware of this and which responsibility the management and the auditor have in relation to the assessment of the going concern assumption.. The thesis will be based on three bankrupt case-companies in the construction industry. There will be drawn up a profitability analysis in order to identify going concern problems that can challenge the financial statement being prepared in accordance with the going concern assumption. The profitability analysis will be compared with the auditors’ report on the financial statement. The management is responsible for the fair presentation of the financial statement. In preparing the financial statement the management must be assume that the statement has been prepared on the going concern basis unless management intend to cease the operation. The auditor’s goal is to obtain audit evidence that management’s use of the going concern assumption is appropriate and whether the company’s ability to continue operating is subject to considerable uncertainty plus determine the implications of the audit report. In assessing the going concern assumption, both management and the auditor must cover a period of at least 12 months from the date of the financial statement, which extend beyond the date of the management’s and auditors’ statement. This implies that both the management and the auditor must involve future expectations in their going concern assessment which by nature is highly uncertain. The degree of uncertainty increases the further into the future an outcome take place, so a subsequent event may result in an outcome that is not consistent with a previous assessment. Management’s and auditor’s going concern assessment is based on information that they had available when tey made their final assessment, i.e. when they approved the financial statement. What happens in the future, one can only predict. When the auditor makes an assessment of the furure a lack of reference in the audit opinion on uncertainty about going concern at not considered as a guarantee that the company is operating the forthcoming year.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2015
Number of pages124