Accurately assessing the ability of a financially distressed company to stay in business through the next year is a difficult task at best. Notwithstanding this difficulty, auditors have seemingly been saddled with a large portion of this responsibility for the companies that they audit. Current...

In the following document we provide an extensive synthesis of the academic literature broadly related to reporting by auditors with respect to the issue of going-concern. Our intent is to provide information to the Public Company Oversight Board (PCAOB) that may prove to be useful in their...

The purpose of this paper is to examine whether institutional investors: 1) anticipate a distressed firm's receipt of a first-time going concern modified audit opinion, and 2) react to a first-time going concern modified opinion by engaging in abnormal net selling of firm shares. Using a...