Auditor's Opinion of Going Concern: Further Evidence of Audit Quality, Opinion Shopping and Financial Reporting Timeliness in Emerging Market

Abstract

The Going Concern (GC) opinion is an auditor's assessment of a company's ability to continue as a GC. This study examines the relationship between audit quality, opinion shopping, timely financial reporting, and GC. Multiple regression analysis was used to test the research hypothesis. The statistical population consisted of 135 companies listed on the Tehran Stock Exchange during 2012-2021 (1350 firm-year observations). The research results indicate a significant positive relationship between audit quality and the auditor's opinion on GC. In addition, the results suggest a negative relationship between opinion shopping and the auditor's GC opinion. However, based on the research findings, no significant relationship was found between timely financial reporting and the auditor's GC opinion.