DETERMINANTS OF GOING CONCERN AUDIT OPINION: EVIDENCE FROM SERBIAN COMPANIES
Abstract
The auditor considers the going concern assumption in order to assess whether the companies whose financial statements are being audited possess the ability to sustain their business operations. This study seeks to analyse the factors that impact the going concern audit opinions, or to examine the impact of leverage, liquidity, company size, profitability, sales growth rate and audit quality on going concern audit opinion. The study uses a regression analysis model and the sample includes 56 Serbian companies with data collected over a three-year period, from 2021 to 2023. These results suggest that upholding high audit quality, ensuring liquidity and profitability and effectively managing size are key factors in forming a thorough and precise evaluation of a company’s ability to continue its operations. The obtained results contribute to improving the assessment of the company’s financial health and reducing information asymmetry between management and external users of financial statements. Undoubtedly, these findings contribute to the improvement of auditing practices and provide a stronger foundation for financial reporting and corporate governance.
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DOI: https://doi.org/10.22190/TEME250509015V
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