We document an increase in auditors issuing going-concern opinions in Australia over a prolonged period since the Global Financial Crisis that is not fully explained by changes in client risk. Overall, our evidence is consistent with auditors reporting more conservatively with the increased...

This paper provides evidence on the incremental investor reaction to a going concern emphasis of matter paragraph (GC-EOM) in the auditor's report over financial statements disclosure of a going concern uncertainty (GC-FS). We make use of a “natural experiment” provided by a change in...