Trusting/distrusting auditors' opinion

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

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'.

Citation

Rodgers, W., Guiral, A., & Gonzalo, J. A. (2019). Trusting/distrusting auditors' opinion. Accounting and business research, 11(6), Article 1666. https://doi.org/10.3390/su11061666

• Journal Article Type: Article
• Acceptance Date: Mar 15, 2019
• Online Publication Date: Mar 19, 2019
• Publication Date: Mar 19, 2019
• Deposit Date: Jun 13, 2019
• Publicly Available Date: Jun 13, 2019
• Print ISSN: 0001-4788
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 11
• Issue: 6
• Article Number: 1666
• DOI: https://doi.org/10.3390/su11061666
• Keywords: Trust; Social capital; Audit report; Sustainable financial markets
• Public URL: https://hull-repository.worktribe.com/output/1987691
• Publisher URL: https://www.mdpi.com/2071-1050/11/6/1666