Drivers of going concern audit opinions: empirical evidence from Indonesia

Suroto Lina Rahmawati () and Kusuma Hadri ()
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Suroto Lina Rahmawati: Faculty of Economics, Islamic University of Indonesia, Condong Catur Depok, Sleman, Yogyakarta, Indonesia, 55283.
Kusuma Hadri: Faculty of Economics, Islamic University of Indonesia, Condong Catur Depok, Sleman, Yogyakarta, Indonesia, 55283

HOLISTICA – Journal of Business and Public Administration, 2017, vol. 8, issue 2, 79-90

Abstract: The study of the going concern audit opinions is an important component within the enhancement of firms’ responsibility and stewardship. A going concern audit opinions implies that the independent auditor doubt the future of the firm. This study aimed to examine the drivers of the likelihood of the going-concern audit opinions. Previous studies revealed that there were inconsistent drivers influencing the going-concern audit opinion. This study shows similar results to prior works. The result indicates that firms’ financial condition and profitability significantly affect the likelihood of the going-concern audit opinion, while firms’ size and leverage are not the determinants of the intensity of the going concern audit opinion.

Keywords: Going Concern Audit Opinion; Financial Condition; Leverage; Profitability; Firm Size (search for similar items in EconPapers)
JEL-codes: M1 M4 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:hjobpa:v:8:y:2017:i:2:p:79-90:n:7

DOI: 10.1515/hjbpa-2017-0015

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