Companies in certain industries received more auditor warnings about their ability to stay afloat over the past year, compared with the previous period, as the coronavirus pandemic put finance chiefs and balance sheets under pressure.
These warnings, also called going-concern opinions, are published in the annual reports of public companies and refer to their likelihood to remain in business for the next 12 months. Businesses themselves also have to sound the alarm if they think they might not make it for another year. Although a going-concern notice doesn’t always precede a company’s demise, it can foreshadow a bankruptcy filing or default.
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8