Predicting a Going-Concern Auditor’s Opinion: ANN Approach | ||
| مجلة الشروق للعلوم التجارية | ||
| Volume 17, Issue 17, 2025, Pages 341-391 PDF (853.03 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/sjcs.2024.304077.1073 | ||
| Authors | ||
| Manar Hassan* 1; Mohamed Aly Wahdan2; Mohamed Saber Elsayed3; Mahmoud Abdel-Wahab Mostafa4 | ||
| 1Assistant Lecturer in Accounting Dept. Menoufia University | ||
| 2Professor of Auditing, Dean of the Faculty of Commerce, Menoufia University | ||
| 3Assistant Professor of Accounting, Faculty of Commerce, Menoufia University | ||
| 4Emeritus Professor in Accounting Dept, Menoufia | ||
| Abstract | ||
| The objective of this research is to Employ neural network techniques that can screen out the most important variables when predicting GCOs. These factors include financial and non- financial variables related to both auditor and auditee. Design/methodology: The study was conducted on a sample consisting of 61 firms listed in the Egyptian Stock Exchange (ESE) belonging to seven sectors during the period from 2018- 2021 with a total of (244) observations. The study adopts two stages to construct going concern prediction models. In the first stage, ANN is used to screen out the most important variables. A total of 9 variables are selected based on their importance value (importance value ≥ 0.05), including CATA, Predictive ability of earnings, Return on investment, Current liabilities/ total assets, Audit lag, Profit ratio, Sales revenue growth rate, and Managerial ownership. In the second stage, the proposed model is constructed for predicting going concern uncertainties. The results reject the study hypothesis and prove that ANN can be used in predicting GCO with high accuracy. The research depended on contingency table to testing the accuracy of ANN model through comparing the predicted results of 61 observations with the actual values. The significant value is 0.000 which is less than (.05). Moreover, behind that, the Wilcoxon test is used to ensure that there is no difference between the actual and predicted opinion by ANN. Result indicate that the p-value equal (0.157) which is more than 0.05, which point out that the two groups aren’t different. | ||
| Keywords | ||
| ANN; Going Concern Opinion; Financial Ratios; Board of Director; Earning quality | ||
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