The Impact of Bankruptcy Prediction, Company's Financial Condition, Previous Year Audit Opinion, Firm Size and Audit Tenure Towards Auditor's Going Concern Opinion
Journal Title: GATR Accounting and Finance Review - Year 2016, Vol 1, Issue 1
Abstract
Objective - The auditor is responsible for obtaining sufficient audit evidence about the accuracy and proper use of the going concern assumption from the company's management through its financial statements. These evidence are used for the purpose of deciding whether there are material uncertainties about the entity's ability to maintain the continuity of its business. Thus, the objective of this paper is to examine the impact of bankruptcy prediction, company's financial condition, previous year audit opinion, firm size and audit tenure towards Auditor's going concern opinion. Methodology/Technique - The object of this paper is the service companies listed on the Indonesia Stock Exchange for the period of 2011-2014. This paper uses secondary data and samples taken were determined based on the purposive sampling method. The regression logistic is used to analyse data. Findings - The results of this research show that bankruptcy prediction, company's financial condition, previous year audit opinion, firm size, and audit tenure all simultaneously, have a significant impact towards Auditor's going concern opinion, particularly Previous Year Audit Opinion. Novelty - This paper provides insights into the factors affecting auditors in providing a going concern opinion in the case of Indonesian companies.
Authors and Affiliations
Ratnawati Kurnia, Lisa Cellica
Keywords
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The Impact of Bankruptcy Prediction, Company's Financial Condition, Previous Year Audit Opinion, Firm Size and Audit Tenure Towards Auditor's Going Concern Opinion
Objective - The auditor is responsible for obtaining sufficient audit evidence about the accuracy and proper use of the going concern assumption from the company's management through its financial statements. These evide...