Obtaining Audit Evidence for Testing the "Going Concern" Assumption Using Advanced Statistical Methods to Analyze the Influence on Overall Borrowing Rate
Author:
Univ. Prof. Elisabeta JABA, Ph.D., Ioan-Bogdan ROBU, Ph.D. Student
JEL:
C12, C38, G32, M41, M42
DOI:
Keywords:
going concern, audit evidence, the overall borrowing rate, factors
Abstract:
The current economic context, marked by the presence of financial crisis and financial fraud, requires to the auditor to adopt the best methods and data analysis techniques for obtaining evidence which will form the basis for substantiation of audit opinion. Financial auditor must evaluate the company`s ability to continue operating in a predictable timeframe. This article aims to present the usefulness of the advanced statistical methods to analyze the influence of the factors on the overall debt ratio as an indicator of business continuity. Starting from the identification of influences, it was demonstrated that their aggregation in a function score may contribute to the classification of firms in different value groups, defined as global borrowing rate. The study was conducted on a sample of 80 firms listed on the Bucharest Stock Exchange in the period 2003-2008. To obtain research results, data were processed with SPSS 15.0.\r\n\r\n