Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between going concern assessment and quality of audited financial statements has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Family-Owned Businesses in Nigeria where operating conditions differ markedly from more developed markets.

Within the context of Selected Family-Owned Businesses in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of going concern assessment on quality of audited financial statements, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on going concern assessment, there remains limited consensus on the precise nature of its relationship with quality of audited financial statements, particularly within Selected Family-Owned Businesses in Nigeria. Many organizations continue to make decisions about going concern assessment without a clear, evidence-based understanding of how those decisions ultimately affect quality of audited financial statements. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Going Concern Assessment on quality of audited financial statements in Selected Family-Owned Businesses in Nigeria.
2. To assess the extent to which going concern assessment influences quality of audited financial statements within the study area.
3. To identify the challenges associated with going concern assessment in relation to quality of audited financial statements.
4. To recommend strategies for optimizing going concern assessment in order to improve quality of audited financial statements.

1.4 Research Questions

1. What is the effect of going concern assessment on quality of audited financial statements in Selected Family-Owned Businesses in Nigeria?
2. To what extent does going concern assessment influence quality of audited financial statements within the study area?
3. What challenges are associated with going concern assessment in relation to quality of audited financial statements?
4. What strategies can be adopted to optimize going concern assessment in order to improve quality of audited financial statements?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around quality of audited financial statements. For managers and practitioners within Selected Family-Owned Businesses in Nigeria, the study provides practical insight into how going concern assessment can be better managed. Finally, it contributes to the academic literature on accounting by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected Family-Owned Businesses in Nigeria, focusing specifically on how going concern assessment relates to quality of audited financial statements within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.