Further evidence on the auditor's going-concern report: The influence of management plans

Bruce K. Behn, Steven E. Kaplan, Kip R. Krumwiede

Research output: Contribution to journalArticlepeer-review

92 Scopus citations


The purpose of this paper is to report the results of a study examining whether auditors' going-concern reports are associated with management plans as directed in SAS No. 59. Proxies for management plan information are taken from management's discussion and analysis (MD&A), the 10-K, or the annual report. The paper extends work by Mutchler (1985) and Chen and Church (1992) by modeling and testing the association between the auditors' going-concern report and three types of management plan disclosures. After controlling for financial condition, size, default status, and the propensity to voluntarily disclose information, the results of the study indicate that auditors' going-concern reporting decisions are strongly linked to publicly available mitigating information relating to certain management plans. In particular, plans to issue equity and to borrow additional funds exerted the strongest association with the issuance of an unqualified opinion.

Original languageEnglish (US)
Pages (from-to)13-28
Number of pages16
Issue number1
StatePublished - Mar 2001
Externally publishedYes


  • Going-concern opinion
  • Management plans
  • Sas no. 59

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


Dive into the research topics of 'Further evidence on the auditor's going-concern report: The influence of management plans'. Together they form a unique fingerprint.

Cite this