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Managerial Auditing Journal, 21
Expert Systems with Applications, 32
Asia Pacific Journal of Management, 31
Managerial Auditing Journal, 28
Managerial Auditing Journal, 30
The British Accounting Review, 48
International Journal of Auditing, 20
Journal of International Accounting, Auditing and Taxation, 24
Journal of International Accounting, Auditing and Taxation, 22
The International Journal of Accounting, 38
Journal of Applied Accounting Research, 10
Auditing: A Journal of Practice and Theory, 9
International Journal of Auditing, 7
Auditing: A Journal of Practice and Theory, 11
Journal of Accounting Auditing and Finance, 3
Accounting Review, 62
Review of Financial Studies, 22
Journal of Business Research, 43
Journal of Applied Accounting Research, 15
Journal of Accounting in Emerging Economies, 6
Journal of Accounting in Emerging Economies, 6
International Journal of Auditing, 4
Journal of Business Finance and Accounting, 30
Financial Review, 49
Accounting and Finance, 34
Journal of Accounting Research, 29
Accounting and Business Research, 18
European Accounting Review, 7
Journal of Accounting Research, 23
PurposeThe purpose of this paper is to investigate the influence of financial variables and especially profitability, loss in current year, loss in previous year, leverage and liquidity in predicting audit report qualifications (qualified audit opinion) and audit report modifications (qualified opinion or unqualified but with an explanatory paragraph).Design/methodology/approachThe authors used hand-collected data from financial statements and from auditors’ general reports of 76 non-financial publicly traded companies over a period of 11 years (2005-2015). A total of 545 audit reports were analyzed.FindingsThe results of panel logistic regression reported a positive relationship between liquidity, loss in the current year, loss in the previous year and a qualified audit report. A positive relationship was found between leverage and audit report modification. Also, the findings show that the Tunisian revolution did not affect the qualification or the modification of the audit report but qualifications decreased significantly during the period of the financial crisis.Practical implicationsThe research has practical implications and can help auditors in identifying factors motivating audit report qualification or audit report modification, mainly in periods of instability.Originality/valueThis study contributes to auditing research, since the authors know very little about the determinants of audit opinion in emerging and African markets. It constitutes an addition to previous knowledge about audit opinion in the context of Tunisia during two important periods: the financial crisis and revolution. This research is one of the rare studies analyzing qualifications and audit report modifications by considering both qualifications and explanatory paragraphs.
Journal of Accounting in Emerging Economies – Emerald Publishing
Published: Nov 6, 2017
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