Title
17. Audit Effectiveness Prior to Bankruptcy
Faculty Mentor(s)
Daniel Boylan, Tanya Bennett
Campus
Gainesville
Proposal Type
Poster
Subject Area
Business
Location
Nesbitt 3110
Start Date
23-3-2018 11:00 AM
End Date
23-3-2018 12:00 PM
Description/Abstract
Management of the U.S. Economy depends heavily on corporations’ annual financial statements (10K’s) which ideally indicate how well a company is doing by many financial measures. This study analyzes data from audit reports of 129 large corporate companies that went bankrupt during 2012-2017. Our hypothesis in this study was that the audit performed by the certified accounting firm of the financial statements of each of these companies for the year prior to their bankruptcy should have contained signs of concern that would have indicated anything other than a healthy company. Our results show that out of the 129 bankrupt companies, 94 did not receive a going concern on their audit report. The repercussions of this lack of effectiveness are significant to the integrity and reliability of the audit report.
Keywords: Financial Statements, 10k, Accounting firm, US Economy, Bankruptcy, Audit
Rights
Credit for research involved goes to: Cameron Barker, Daniel Boylan, Lisa Nash, and Evidence Matangi, and will be displayed on the poster along with references.
17. Audit Effectiveness Prior to Bankruptcy
Nesbitt 3110
Management of the U.S. Economy depends heavily on corporations’ annual financial statements (10K’s) which ideally indicate how well a company is doing by many financial measures. This study analyzes data from audit reports of 129 large corporate companies that went bankrupt during 2012-2017. Our hypothesis in this study was that the audit performed by the certified accounting firm of the financial statements of each of these companies for the year prior to their bankruptcy should have contained signs of concern that would have indicated anything other than a healthy company. Our results show that out of the 129 bankrupt companies, 94 did not receive a going concern on their audit report. The repercussions of this lack of effectiveness are significant to the integrity and reliability of the audit report.
Keywords: Financial Statements, 10k, Accounting firm, US Economy, Bankruptcy, Audit
Note to Conference Administrators
Revised Abstract.