The Role of Auditor Switching on Going Concern Audit Opinion Acceptance

Abstract

This study aims to investigate the effect of financial condition on the acceptance of going concern audit opinion with auditor switching as moderating variable. The existence of auditor switching as a moderating variable is the originality or novelty of the research that is different from the previous researchers. The population of this study is a manufacturing company consistently listed on IDX in 2012-2016 totally 124 companies. The Samples in this study was collected by purposive sampling method, obtained 28 manufacturing companies and analyzed 112 collected samples. This study propose and examine eight hypotheses with statistical analysis technique, and logistic regression analysis. The results showed that ratio of activity and solvency had significant effect on acceptance of going concern audit opinion. However, the liquidity, and profitability have no significant effect. Meanwhile, variable moderating can moderate the effect of activity on acceptance of going concern audit opinion. Conclusion of this study is factors that proven influence of going concern opinion are activity, solvency, and auditor switching. This study offered a theoretical and empirical contribution to the literature, such as empirical evidence that the auditor switching mediated the effect of financial statement condition on going concern opinion acceptance as a novelty of this research.