Nonprofit stakeholder response to going-concern audit opinions Article

Amin, K, Harris, EE. (2017). Nonprofit stakeholder response to going-concern audit opinions . JOURNAL OF ACCOUNTING AUDITING AND FINANCE, 32(3), 329-349. 10.1177/0148558X15604989

cited authors

  • Amin, K; Harris, EE



  • Using a sample of industry-diverse nonprofit organizations, we find support for stake-holders’ use of nonprofit going-concern audit opinion (GCO) reports. We study the reactions of the three largest nonprofit stakeholder groups: donors, service recipients, and managers. Our findings suggest that although large (sophisticated) donors respond negatively to a GCO, small (unsophisticated) donors contribute more following a GCO. We also find that service recipients spend more at service-oriented organizations than at charitable nonprofits following a GCO. Finally, managers respond to a GCO by increasing organizational efficiency at service-oriented organizations. Taken together, the evidence suggests that GCOs are informative in the nonprofit sector, and stakeholders’ responses to GCOs depend on stakeholder and organization type.

publication date

  • July 1, 2017

Digital Object Identifier (DOI)

start page

  • 329

end page

  • 349


  • 32


  • 3