Multi risk level examination of going concern modifications

The literature has revealed auditors¿ going concern risk disclosures are examined in research as a homogenous risk class. This is despite the various going concern modifications auditors are entitled to give pertaining to this issue. A five-level risk class is established in this paper derived from Australian Auditing Standard pronouncements to examine the appropriateness of auditors¿ going concern reporting relating specifically to the likelihood of firm failure.