Going concerns dipped 31% in 20 years.

TLDR:

Going concern opinions have decreased by 31% over the past two decades, hitting 1,515 in 2023. The decline does not always indicate an improved population, according to the report.

Key Elements:

According to a report by Ideagen Audit Analytics, going concern opinions have decreased by 31% over the past two decades, dropping to 1,515 in 2023 from 2,202 in 2004. The total peaked at 2,853 in 2008 during the financial crisis.

In 2023, going concerns were down 20% from the previous year, returning to levels similar to 2017. However, a decline in going concerns may not always mean an improved population as companies that previously received going concern opinions may have gone out of business.

The decline in recent years raises questions about what it indicates for the future. The Governmental Accounting Standards Board has formed a task force to address diversity in practice and clarify when going concern disclosures are appropriate.

The report analyzed financial statements in the Audit Analytics SEC Audit Opinion database and contains findings by company size, filer type, industry, and changes or repeats in going concern opinions. For example, non-accelerated filers have maintained a going concern rate nearly 10 times greater than accelerated filers since 2006.