Reviewing the Theoretical Contradiction of Going Concern (Auditing Standard No. 57) with Views of Independent Auditors
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2012, Vol 3, Issue 5
Abstract
Given that the auditing standards in Iran are the translated versions of international auditing standards entirely, and their mismatch with the business context in our country because each country's laws cannot be fully compatible with business context of other countries, and also due to lack of auditing culture, lack of attention to the raison d'être of auditing, and other problems and challenges, there has been a gap between theatrical level and views of the independent auditors with regard to full implementation of auditing standards. Hence, finding the origins of and bridging the gaps between theoretical level and views of independent auditors, and providing solutions for implementation of auditing standards for the purpose of improving the quality of auditing and auditing organizations seem to be necessary. Among these, Auditing Standard No. 57 (going concern) can be pointed to which has been studied here. Generally, going concern means that the audited entity will continue to exist in the foreseeable future - usually for a period of one year after the end of the fiscal period, i.e. no intention or obligation for liquidation of the business entity or significant reduction in its amount of operations is assumed for preparation and presentation of financial statements. In this study, 6 major criteria affecting going concern were derived from Auditing Standard No. 57 including: unfavorable key financial ratios, greater total debts than total assets, failure to pay accounts payable in a timely manner, higher cash outflows than cash inflows from operating activities and major operating losses were considered as 6 hypotheses of contradiction of going concern (Auditing Standard No.57) with the views of independent auditors and were subsequently tested. Each hypothesis was tested using some questions from a questionnaire for Likert scale, and finally the questionnaires were collected and tested using chi-square test which is a nonparametric test, by means of SPSS software programs. All hypotheses regarding the relationship between the factors influencing the going concern were not rejected and thus were accepted in this study. And finally it can be concluded that there is no theoretical contradiction between Auditing Standard No. 57 (going concern) and the views of independent auditors.
Authors and Affiliations
Ali Rouhi| Assistant Professor, Islamic Azad University, Central Tehran Branch, Amir Reza Keighobadi| Lecturer Ph.D Scholarship, Islamic Azad University, Central Tehran Branch, Fatemeh Hatami Touski*| M.A. in Accounting, Islamic Azad University, Central Tehran Branch,fatemeh.hatami88@yahoo.com
Keywords
Related Articles
- EP ID EP5005
- DOI -
- Views 456
- Downloads 25
A qualitative study to developingtheteacher’sprofessional standards
This study aims to design an indigenous model of professional standards that measure instructional and professional performance of high school teachers, particularly in the teaching - learning environments. The research...
Assess the Status of Research on Strategic Planning Initiatives, Islamic Azad University of Rasht
The current research aimed to Assessing the state of Research Activities in terms of the components of Strategic planning in the of Rasht Azad University and also examined differences between the current and the ideal si...
Finite element modeling of the human Brain Under impact conditions
The head is the most vulnerable part of the body during crash situations and is often involved in life-threatening injuries. The main purpose of the present work is to build and validate a numerical model of human head i...
The Study of Persuasion language in Life Insurance Advertisements
The main objective of this survey is to investigate persuasion techniques used in life insurance advertisements, beside it discusses about life insurance advertisements from linguistics point of view. The two hypotheses...
The Effect of Application Educational Modern Technologies (Computer and Internet) on the Teachers Professional Performance in High School of Zahedan
This study attempts to examine effective of new educational technology (computer and internet) on professional performance of high school teachers in Zahedan City. This study uses descriptive –survey methodology to analy...