An important change in auditors reporting behaviour in the period after the high-profile corporate collapses in 2001 is that auditors were more likely to issue going-concern (GC)-modified audit opinions. Comparing company failure rates subsequent to receiving a first-time going-concern (FTGC)-modified audit opinion in the pre- and post-2001 periods, we find a consistent type 1 error (misclassification) rate (the rate of survival among companies issued an FTGC opinion). Results are indicative of auditors maintaining GC reporting accuracy when comparing the 1995-1996 and 2004-2005 periods. This conclusion is supported after considering the impact of mitigating circumstances surrounding companies that received an FTGC-modified audit report and survived.
Carey, P. J., Kortum, S. A., & Moroney, R. A. (2012). Auditors' going-concern-modified opinions after 2001: Measuring reporting accuracy. Accounting and Finance, 52(4), 1041 - 1059. https://doi.org/10.1111/j.1467-629X.2011.00436.x