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Trusting/distrusting auditors' opinion

Rodgers, Waymond; Guiral, Andrés; Gonzalo, Jose A

Authors

Andrés Guiral andres.guiral@yonsei.ac.kr5.josea.gonzalo@uah.es

Jose A Gonzalo

Abstract

Trust relations are essential for effective interchanges in the financial markets. Investors 9 (trustors), as well as other market participants, can only trust financial markets if they trust their 10 auditors (trustees). Especially, auditors' assessment on the client's financial condition and its 11 ability to continue as a going concern is paramount to improving social capital and maintaining 12 sustainable financial markets. Research shows that a going concern opinion may have immediate 13 consequences for both the auditing profession and financial statement users. We utilize the 14 Throughput Model to illustrate how different trust positions are aligned with a particular 15 auditor's decision-making pathway to enhance trust, distrust or no trust from the point of view of 16 investors' and creditors'.

Journal Article Type Article
Publication Date Mar 19, 2019
Print ISSN 0001-4788
Publisher Taylor & Francis (Routledge)
Peer Reviewed Peer Reviewed
Volume 11
Issue 6
Article Number 1666
Institution Citation Rodgers, W., Guiral, A., & Gonzalo, J. A. (2019). Trusting/distrusting auditors' opinion. Accounting and business research, 11(6), https://doi.org/10.3390/su11061666
DOI https://doi.org/10.3390/su11061666
Keywords Trust; Social capital; Audit report; Sustainable financial markets
Publisher URL https://www.mdpi.com/2071-1050/11/6/1666

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Copyright Statement
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).




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