LIQ is the ratio of net loans to customers and short-term funding that serves as a measure of liquidity which reveals the relationship between comparatively illiquid assets (i.e. loans) and comparatively stable funding sources (i.e. deposits and other short-term funding)[9]. The influence of liquidity on auditor’s decision is unclear. On one hand, the possibility of a qualified audit report is higher when the financial health of a company deteriorates (i.e. low liquidity) (Spathis, 2003), while on the other hand high liquidity may increase disagreement type modifications as assets may have been overstated to meet the above mentioned requirements (Ireland, 2003).