An analysis of determinants of going concern audit opinion: Evidence from Tehran Stock Exchange

Abstract

This paper presents an empirical investigation to find out important factors influencing exchange authorities for keeping firms on Tehran Stock Exchange. The proposed study uses logistic regression technique to study the effects of five factors including liquidity, solvability, profitability, cash flow and size of auditing firm. The results of the study show that only solvability is the most important factor according to auditing officials for extending listed firms on this exchange while the effects of other factors, liquidity, capability of meeting commitments, profitability, cash flow and size of auditing firm, are not statistically significance.

Analisis Pengaruh Rasio Keuangan Terhadap Penerimaan Opini Audit Going Concern

“…Perusahan yang mampu membiayai hutangnya pada saat jatuh tempo mapun jangka panjang belum tentu likuid, begitu juga sebaliknya. Gharaghayah (2013) menyatakan bahwa jika rasio solvabilitas merupakan rasio yang paling penting menurut pejabat audit dalam memperluas perusahaan. Pengukuran yang digunakan rasio silvabilitas (leverage) ialah: Total debt to asset ratio adalah rasio yang menilai kemampuan suatu usaha dalam membiayai hutangnya dengan sejumlah assets yang dimilikinya.…”

The Role of Auditor Switching on Going Concern Audit Opinion Acceptance

“…The findings of Feng [3] indicate detectable adverse economic consequences of GCARs in the non-profit sector. There are many factor to influence going concern opinion such as an auditor's competence and independence [4], bankruptcy prediction score Farhana et al [5] and Gallizo Larraz and Saladrigues [6] leverage Srimindarti et al [7], solvability Gharaghayah et al [8]. The scholars, investigating determinants of going concern opinion in terms of the financial performance indicators such as liquidity, profitability, activity, and solvency, found inconsistent results.…”