Hypothesis 3: The used model will outperform the opinion of the auditor. Based on the results of the research the conclusion can be drawn that the most important proxies, the revenue - and cash flow proxies, show a significant difference in comparison to the control group. That would indicate that these companies are in financial distress and the conclusion could even be drawn that there would be a chance that these companies were going to file for bankruptcy. If the auditor would have realized this, their audit opinion would most probably have been different. There by the model outperformed the assessment of the auditor. Based on the total findings of my research one can state that the companies who filed for bankruptcy have applied earnings management. And based on the findings of my research it is possible to predict that the companies are in financial distress and even may fill for bankruptcy.
Hypothesis 3: The used model will outperform the opinion of the auditor. Based on the results of the research the conclusion can be drawn that the most important proxies, the revenue - and cash flow proxies, show a significant difference in comparison to the control group. That would indicate that these companies are in financial distress and the conclusion could even be drawn that there would be a chance that these companies were going to file for bankruptcy. If the auditor would have realized this, their audit opinion would most probably have been different. There by the model outperformed the assessment of the auditor. Based on the total findings of my research one can state that the companies who filed for bankruptcy have applied earnings management. And based on the findings of my research it is possible to predict that the companies are in financial distress and even may fill for bankruptcy.