The impact of credit rating quality on auditors’ predictions of going-concern opinions: the moderator role of supply chain management efficiency

Purpose This study aims to examine how credit rating quality (CRQ) affects the probability of an auditor’s going-concern opinion (GCOP). It also examines the moderating effect of supply chain management efficiency (SCME) on companies listed on the Tehran Stock Exchange. Design/methodology/approach A total of 1,991 firm-year observations from 191 firms between 2014 and 2024 were analyzed. The CRQ was determined using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and entropy weighting methods. The SCME was calculated using the sales-to-inventory ratio. Given the binary nature of the dependent variable, a binary logistic regression analysis was used. Findings The results showed that CRQ significantly decreased the GCOP. SCME also strengthens this negative effect. Several robustness checks confirm these results. Originality/value Recent audit failures have highlighted the lack of early warning systems and GCOPs. The International Auditing and Assurance Standards Board’s Revised ISA 570 (Revised 2024) focuses on financial and operational indicators, but does not address the CRQ in auditors’ going-concern assessments. However, research on how SCME and CRQ interact during this process is limited. This study fills this gap and provides new empirical evidence for managers, auditors, investors and policymakers.