""Going Concern"" And The Effects Of The Operational Cycle Management. An Empirical Study Concerning The Usage Of Financial Analysis For Obtaining Preliminary Proofs In The Task Of Financial Audit

In the financial audit engagement, the auditor’s objective is to express an independent and professional opinion regarding the accuracy of financial statements, in agreement with the accounting reference. Also, the auditor will ensure that financial statements have been drawn in compliance with the principle of the “going concern”. This paper aims at setting the foundation of a basic mathematical model, based on the correlations established between a set of variables capable of characterizing the changes in the operating activity, which helps obtaining audit proofs regarding the (non-) compliance with the principle of going concern of the audited entities. Designing this model implies a study of the financial statements belonging to a sample made up of 80 quoted companies, following the benchmark of financial audit standards. The suggested model will be tested through a sensitivity analysis using the Monte Carlo method. For processing the information, for the regression analyses, and for the multiple correlations implied by the foundation of the model, the statistic instrument SPSS 15.0 will be used.