Determinants of going-concern audit opinions: evidence from Vietnam stock exchange-listed companies

Abstract

In this study, we aim to examine the effect of company and auditor characteristics on the issuance of going-concern opinions. The study population encompasses all financially distressed manufacturing companies listed on the Vietnam Stock Exchange during 2010–2019. The results indicate that the financial condition, incurring loss, audit report delay, and frequency of the board of director meetings significantly influence the issuance of auditors’ going-concern opinions. Company size, auditor size, and other financial ratios such as return on asset, leverage, and liquidity have no significant impact on the going-concern audit opinions. This study contributes to the limited research on going-concern audit opinions in the context of Vietnam. The results also provide a basis for recommendations to both auditors and audit clients on the determinants of going-concern audit opinions.