Abstract

Going concern (GC) assessment is a central element in the audit process. During the Global Financial Crisis the increasing number of companies receiving a going concern opinion (GCO) has stimulated public interest on this topic. Our study fuels the debate about the financial indicators used in professional practice distinguishing between the big4 and non-big4 auditors’ perspectives. Similar studies have been conducted in the past that investigated which financial ratios are the most widely used in practice. However, in 2013 Carson et al stressed the fact that the audit environment is in constant evolution, therefore it is essential to update the evidence. Our results highlight which financial indicators in the auditors’ opinion are more effective to assess whether the entity is able to continue as a GC. Our research can be useful first of all for auditors in small and medium entities, but also for dierctors, due to the fact that there is a lack of studies regarding the indicators proposed by ISA 570, where the attitudes of the big4 and non-big4 are compared.

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