This paper reports on the effect of a self-fulfilling prophecy on issuing a going concern opinion.\r\nA thorough analysis of the academic accounting literature and the popular press is performed\r\nto develop a better understanding of the rationales used by auditors in their decision to issue,\r\nor not to issue a going concern opinion. Based on the input of an expert panel, a literature\r\nreview, and other quantitative criteria, the visibility and importance of these rationales is\r\ndetermined. A questionnaire is then developed to measure if the self-fulfilling prophecy has a\r\nrole in auditors� decision to issue, or not to issue a going concern opinion. This questionnaire is\r\nadministered to randomly selected CPAs in Illinois and also to auditing students at Eastern\r\nIllinois University. The psychometric properties of this questionnaire are thoroughly tested\r\nusing statistical techniques like Cronbach�s Alpha. The paper also uses statistical techniques\r\nincluding factor analysis, scree plots, and perceptual maps to understand the underlying\r\ndimensions of a CPA�s decision to issue, or not to issue a going concern opinion. Finally, the\r\npaper uses statistical techniques such as t-testing to determine if significant differences exist\r\nbetween the respondents.
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