The Effect of Financial Distress, Company Size, and Audit Quality on the Going Concern Opinion

Abstract

Since 2020, the Covid-19 pandemic has affected the Indonesian economy and the company's going concern. Therefore, the purpose of this study is to examine the factors that influence an auditor to issue a going concern opinion about a company, particularly the effect of financial distress, company size, and audit quality. Data was collected from property companies listed on the Indonesia Stock Exchange for three years, from 2018 to 2020, using financial statement data. Furthermore, logistic regression was used as the test tool to determine the effect of the independent variable on the dependent. The results showed that financial distress affects going concern opinion, while company size and audit quality do not.Keywords: Keywords: financial, quality, and going concern

The effect of profitability, liquidity, solvency, and company growth on the acceptance of going concern audit opinions on consumer cyclicals companies listed on the IDX in 2019-2022

“…Company growth can indicate the company's ability to maintain its business continuity [7]. Companies that experience increased company growth, will show that the company is running properly so that it is possible to continue its business continuity in the future.…”

“…[4] In his research stated that the company's growth affects the receipt of audit opinions going concern. Meanwhile, differences were seen in the study [1] and [7] where they state the same thing that the growth of the company has no influence on the acceptance of the audit opinion going concern.…”