Surveillance model of going concern in banking
AbstractThis paper aims to apply the anatomy of bank financial condition in modelling bank going concern status. The anatomic factors are market presence, macro-economic condition, deposit fragility, prudence, earnings quality, market power and capital confidence (Njoku and Inanga, 2010). Discriminant analysis was applied to the anatomic factors to indicate characteristic differences among banks likely to attract going concern opinion and the unlikely ones. The result shows that in banking landscape typified by market presence and deposit mobilisation, bank failure to effectively exploit market power and translate it into earnings is critical in hurting the going concern status. As such, market power, earnings quality, market presence and deposit mobilisation should usefully command focal attention of auditors in reaching going concern opinion.
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Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal African J. of Accounting, Auditing and Finance.
Volume (Year): 1 (2012)
Issue (Month): 1 ()
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bank anatomy; bank financial conditions; audit opinion; audit risk modelling; going concerns; auditing; market power; earnings quality; market presence; deposit mobilisation; banking industry; surveillance models.;
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