Canadian reporting standards do not require the auditor's report to be qualified (modified) if the going-concern contingency is described in the notes that accompany the financial statements. In response to criticism that this approach is passive and the signal mute (Boritz 1991), the Canadian...

This study questioned whether the current or proposed Canadian standard of disclosing a going-concern contingency is viewed as equivalent to the standard adopted in the U.S by financial statement users. We examined loan officers' perceptions across three different formats, namely, integrated...