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2018 | OriginalPaper | Buchkapitel

5. The Role of Going Concern Evaluation in Both Prediction and Explanation of Corporate Financial Distress: Concluding Remarks and Future Trends

verfasst von : Marisa Agostini

Erschienen in: Corporate Financial Distress

Verlag: Springer International Publishing

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Abstract

This chapter reviews the main research questions raised in the previous chapters. Their answers will enable us to formulate some concluding remarks about the evaluation of corporate financial distress according to going concern standards in both international and US contexts. In particular this chapter aims at summarizing the main points considered in the book with a view to re-evaluating and updating the existing literature about the concept of corporate financial distress, the types of corporate distressed paths, the prediction and evaluation of corporate financial distress from the viewpoint of different stakeholders, the way in which managers and auditors influence and evaluate the corporate communication of financial distress, the results, and the implications of the convergence process implemented by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) regarding going concern evaluation.

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Fußnoten
1
In spite of specific auditing standards (before SAS No. 82 “Consideration of Fraud in a Financial Statement Audit”, then SAS No. 99 “Consideration of Fraud in a Financial Statement Audit”), fraud detection remains the Achilles heel of the audit profession (Jamal 2008). Moreover, auditors’ responsibility for fraud detection has changed significantly over time, having major picks and changes immediately after major scandals (Chui and Pike 2013).
 
2
SAS No. 99 recommends auditors to ask the advice of forensic specialists. These investigate the signals of the fraud (Silverstone and Davia 2005; Rosen 2006; Singleton et al. 2006; Hopwood et al. 2012), while the mission of auditors’ work is to state the true and fair representation of all material items in financial statements consistently with regulations and standards. In order to explain the different missions of auditors and forensic specialists, Gerson et al. (2006) describe the first as patrolmen and the second as detectives.
 
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Metadaten
Titel
The Role of Going Concern Evaluation in Both Prediction and Explanation of Corporate Financial Distress: Concluding Remarks and Future Trends
verfasst von
Marisa Agostini
Copyright-Jahr
2018
DOI
https://doi.org/10.1007/978-3-319-78500-4_5