Do Auditors and Clients Respond to the Expected Self-Fulfilling Prophecy Effect of Going Concern Opinions?
Journal of Accounting, Auditing & Finance
Published online on July 09, 2025
Abstract
Journal of Accounting, Auditing & Finance, Ahead of Print.
Prior auditor reporting literature posits a self-fulfilling prophecy (SFP) effect, whereby auditors’ going concern opinions (GCOs) increase the probability of subsequent failure for audit clients. This possibility of a causal SFP effect for GCOs has ...
Prior auditor reporting literature posits a self-fulfilling prophecy (SFP) effect, whereby auditors’ going concern opinions (GCOs) increase the probability of subsequent failure for audit clients. This possibility of a causal SFP effect for GCOs has ...