The Impact of Professional and Regulatory Factors on the Accuracy of External Auditor Reports Regarding the Going-Concern of a Firm-A Study of a Sample of Auditors in Algeria Province

Abstract

The going concern assumption represents one of the cornerstones of financial reporting and external auditing, as it directly influences the reliability of financial statements and the confidence of stakeholders. This study examines the extent to which professional and regulatory factors affect the accuracy of external auditors’ opinions regarding an entity’s ability to continue operations. Using a field study based on a sample of 80 auditors, accountants, and financial experts in Algeria, the research analyzes the role of disclosure in audit reports and the influence of variables such as audit firm size, audit fees, industry specialization, auditor independence, experience, and the disclosure practices of audited firms.

      The results reveal that both disclosure and professional factors play a decisive role in shaping the reliability of continuity assessments. High agreement among respondents emphasizes the responsibility of auditors to disclose continuity concerns in their reports and highlights that firm size, audit fees, auditor independence, and fear of client loss significantly influence the accuracy of such disclosures. The findings underscore the importance of strengthening professional practices, enhancing independence, and improving disclosure standards to ensure that auditors’ reports remain a trustworthy basis for decision-making.