Volume 16, Number 1, June 2021
| Determinants of the Qualified Audit Opinion in Cameroon: The Role of the Company's Financial Situation and the Quality of the External Audit |
Abstract
The objective of this study is to explain the qualified audit opinion in Cameroon through the financial situation of the audited companies as well as the quality of the external auditor. Based on the chi-square independence test, the Kruskal-Wallis comparison test, and the logistic regression on the data collected by questionnaire from 75 preparers of accounts, the results reveal, on the one hand, that the average probability that a randomly selected company in the sample received a qualified audit opinion is 33%. On the other hand, the probability of receiving a qualified audit report increases significantly with the level of indebtedness of the company and the auditor's or audit firm's membership of an international network. Besides, the probability of receiving a qualified audit opinion decreases significantly with the company's profitability and its low level of liquidity.
Keywords: Qualified Audit Opinion, Financial Situation, Quality Of The Auditing, Agency Theory, Signal Theory.
JEL Classification: G20, M41, M42, Z23