Approximately 37 percent (83 out of 223) of the sample companies received a going-concern report. As expected, companies that receive going-concern reports have on average a smaller percentage of affiliated directors on the audit committee (p < 0.01). For entities receiving a going-concern report, only 19 percent of audit committee members are affiliated directors. By contrast, almost 40 percent of audit committee members are affiliated directors for entities receiving an unmodified report.