The Effect of Audit Structure on Auditor’s Going-Concern Opinion Decision Accuracy

This study examined two questions related to auditors’ going-concern opinion decision accuracy. First, this study examined the relationship between audit structure and auditors’ going-concern opinion decision accuracy. The results indicate that after controlling for bankrupt companies’ financial condition, there is no significant difference in the going-concern opinion decision accuracy over the different degrees of audit structure. Second, this study investigated the effect of SAS No. 59 on the relationship between audit structure and auditors’ going-concern opinion decision accuracy. The results of the study indicate that SAS No. 59 improved auditors’ going-concern opinion decision accuracy. However, SAS No. 59 did not systematically change the association between audit structure and auditors’ going-concern opinion decision accuracy.