The application of the multi discriminant analysis model in assessing the going concern of a firm.
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Date
2000
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Publisher
University of Dar es Salaam
Abstract
Bankruptcy and business failure has been a subject of study for a number of years in Tanzania. However, no study so far touched upon the issue of how auditors can assess the going concern of a firm before it comes to fails. This could be attributed to the fact that it is the government policy that all business should prepare their financial statement in accordance to standards and guidelines of the National Board of Accountant and Auditors (NBAA). The NBAA's guidelines and standards follow judgmental (subjective) method and, as a result, it has been difficult to assess the going concern status of firms. This study has attempted to examine how best auditors can assess the going concern status of firms. It thus examined financial statements for various firms audited by the Tanzania Audit Corporation (TAC). To achieve our goal, questionnaires were administered and some interviews were carried out involving auditors from TAC and Price Water House Coopers. We suggested the Multi-discriminant Analysis Model (MDA) as the reliable and objective method to be used for assessing the going concern status of a firm. The findings suggested that the MDA model could predict business failure even two years before. Therefore, it was recommended that MDA is the most reliable and objective method to rely upon when making assessment of going concern.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HF5667.A22)
Keywords
Auditing, Private companies, Public corporations
Citation
Abbakari, J. (2000). The application of the multi discriminant analysis model in assessing the going concern of a firm. Master dissertation, University of Dar es Salaam.