Abstract
Audit opinion on a financial report is needed by users of financial statements, both external and internal parties. Users of these financial statements need opinions from independent auditors as collateral for the reliability of the information presented in the financial statements. The auditor is also obligated to evaluate wether there are doubts about the going concern of the company. The opinion about the going concern auditor’s dounts is called the going concern audit opinion. This study aims to determinde the effect of bankruptcy probability, audit lag, and company size on the acceptance of going concern audit opinion. It tested the hypotheses using the logistic regression method. The results of this study indicate that the probability of banckruptcy has a negative effect while audit lag and company size do not addect the issuance of going concern audit opinion.
Highlights
Businesses that are increasingly developing make Indonesian companies need increasingly large sources of funding
The factors that influence the issuance of going concern audit opinion are very important to know because it can be a material consideration of investors in making investment decisions
This study examines the factors that influence the issuance of going concern audit opinion on manufacturing companies listed on the Stock Exchange in the period 2008-2011, namely: financial conditions, audit lag, and company size
Summary
Businesses that are increasingly developing make Indonesian companies need increasingly large sources of funding. Companies that go public are required to publish their financial statements at the end of each accounting period as a form of accountability to both internal parties and external parties in need. Internal companies such as company management, board of directors, and board of commissioners require these financial statements as an evaluation of company performance and performance. Audit services conducted by public accountants will produce an opinion (opinion) about the fairness of the financial statements that have been presented by the company This opinion will certainly greatly affect the company's relationship with its internal and external parties. This is because the audit opinion issued by the auditor can affect the confidence of users of financial statements on the accountability and credibility of the information contained in these financial statements
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