In Taiwan, most of the listed companies are family-controlled and the boards of those companies are comprised of family members who usually hold large amount of shares. From the perspectives of internal governance mechanisms and external market incentive mechanisms, we examine whether high concentration of directors' shareholdings will jeopardize auditor independence. The evidence indicates that when the company's concentration of directors' shareholding is higher, the auditor is less likely to issue going-concern opinion. Further, we also find this negative relation between concentration level of directors' shareholding and the probability of issuing going-concern opinion will be strengthened when the client is more important for the auditor.