The Influence of Financial Distress, Debt, And Profitability on the Audit Opinions of Going Concerned with Industry-Specialist Auditors as Moderating Variables

Abstract

This study aims to examine the effect of financial distress, debt, and profitability on the acceptance of going concern audit opinions with the industry-specialist auditors variable as the moderating variable, this research was conducted on the manufacturing industry listed on the Indonesia Stock Exchange for the 2018-2020 period. The data used is secondary data obtained from the Indonesia Stock Exchange website and the company's official website. The theory used is agency theory and signal theory. These two theories can provide an overview of the correlation between the variables in the study. The analytical method used is logistic regression analysis and moderated regression analysis with an absolute difference value approach. The results showed that the financial distress variable proxied by the Altman z-score, and the profitability variable proxied by Return on Assets had a positive and significant effect on the acceptance of going concern audit opinion. In addition, the industry-specialist auditors variable as a moderating variable can strengthen the negative effect of profitability on going-concern audit opinion. Meanwhile, the debt variable as proxied by the Debt to Equity Ratio does not have a positive effect on the acceptance of going concern audit opinions, as well as the industry-specialist auditors variable which is expected to strengthen the positive influence of financial distress, and debt is not supported.