The external audit report is a guarantee of financial information reliability that companies provide to the market for stakeholders' decisions. However, some firms did not disclose relevant information on company risks for users due to managers' pressure. Few years ago, auditors of listed...

Despite the number of studies on bankruptcy prediction using financial ratios, very little is known about how external audit information can contribute to anticipating financial distress. A handful of papers have shown that a combination of ratios and audit data is significant for predictive...