The analysis of influencing factors on the going concern audit opinion – a study in manufacturing firms in Indonesia

Thomas Averio

Asian Journal of Accounting Research, 2020, vol. 6, issue 2, 152-164

Abstract: Purpose - It is argued that the going concern opinion is issued if auditors have a doubt about financial condition of a company. Provision of the going concern audit opinion may worsen the company in terms of gaining public trust and may even indicate bankruptcy. This study aims to determine the factors that affect the auditor's going concern opinion. Design/methodology/approach - This research used secondary data obtained from annual reports and independent audit reports published by the Indonesia Stock Exchange. The population of this research included manufacturing firms registered in the Indonesia Stock Exchange from 2015 to 2019. The sample after the purposive sampling technique being applied consisted of 33 companies. The data were analyzed using logistic regression performed in the statistical analysis software, SPSS 24.0. Findings - The results indicated that leverage positively affected the going concern audit opinion, then the audit quality, profitability and liquidity negatively affected the going concern audit opinion, whereas firm size and audit lag did not affect the going concern audit opinion. Originality/value - This study is in contrast to several existing studies on the determinants of the auditor's going concern opinion and provides knowledge on developing more factors affecting the auditor's going concern opinion.

Keywords: Going concern; Firm size; Audit quality; Profitability; Audit lag; Liquidity; Leverage (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ajarpp:ajar-09-2020-0078

DOI: 10.1108/AJAR-09-2020-0078

Access Statistics for this article

Asian Journal of Accounting Research is currently edited by Dr. Iman Harymawan

More articles in Asian Journal of Accounting Research from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().