Michael Willenborg


IPOs that disclose ‘bad news’ go public at lower prices

Sunglasses beside a note with the word "Confession" written on it.
(istockphoto.com)

As part of their professional responsibilities, external auditors must assess a cornerstone assumption of financial accounting: namely, whether there is substantial doubt that the company, whose financials they are examining, will continue to operate as a ‘going concern’ (GC). If they conclude that such doubt exists, they must disclose this in their audit opinion. Continue Reading