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Final 2013 Going-Concern Filings Expected to Decline

Tammy Whitehouse | January 7, 2015

Both the raw number and the percentage of companies getting a red flag from the auditor questioning the company’s viability in 2013 are expected to diminish when final figures are available, but that doesn’t necessarily mean public companies are healthier.

A recent analysis of audit opinion that carry the going-concern warningwhere auditors indicate they have doubts about the company’s ability to remain a going concernshows the final number of such opinions for 2013 is expected to decline to 2,384 from 2,532 opinions filed in 2012. That will represent the sixth year of steady decline from a high of 3,354 going-concern opinions filed in 2008.

The analysis estimates the final number of opinions for 2013 based on the filing patterns of 2012 through early July. By that point, more than 90 percent of going-concern opinions had been filed, but opinions can trickle in later in the year. The percentage of companies drawing the red flag also...

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