Audit Opinion Research Articles

Audit Opinion And Sharia Compliance In Increasing Trust In Zakat Baznas Padang Panjang

The purpose of this research is to determine audit opinion and sharia compliance in increasing trust in zakat in Baznas Padang Panjang City. Type of qualitative research, phenomenological approach method. Baznas Research Location Padang Panjang City. The results of research on audit opinion and sharia compliance are complementary audit instruments. Sharia compliance audits complement conventional financial audits, so that the picture of Baznas' financial performance reports is more comprehensive. So that Baznas is worthy of being an authority institution in carrying out zakat management professionally and with integrity in zakat management, realizing a commitment to transparency, increasing the value of accountability as a manager of zakat funds and finally building a positive reputation and image in society. Public trust is the main factor in increasing zakat receipts at Baznas. A positive audit opinion and sharia compliance predicate is a combination of instruments that contribute to increasing Baznas zakat receipts. The research is implemented in providing recommendations to zakat management institutions that have not carried out audit activities to start implementing them. Audits help zakat institutions in building public recognition and trust.

Determinasi Opini Audit Going Concern

Going concern audit opinion is an opinion issued by the auditor to the auditee to determine whether the company can maintain its survival. A going concern audit opinion represents a negative signal for the company’s survival. Therefore, if a company is declared as going concern, it means that the company is declared capable of maintaining its business continuity. The aim of this research is to determine the influence of the pervious year’s audit opinion, auditor reputation, company growth and profitability on going concern audit opinion. The objects in this research are mining companies listed on the Indonesia Stock Exchange in 2016-2022. This type of research is quantitative research in the form of secondary data sourced from each company’s website and through the official IDX website. The sample in this research is mining companies listed on the Indonesia Stock Exchange in 2016-2022. The data collection technique used side purposive, which then obtained a sample of 34 companies. In this research, logistic regression analysis was used to analyze research data. The result of the test showed that the previous year’s audit opinion had a significantly positive effect on going concern audit opinion. The auditor reputation and company growth don’t have a significant effect on going concern audit opinion. Meanwhile, profitability has a significant negative effect on going concern audit opinion.

The Influence of Profitability, Liquidity, Solvency and Company Growth on Going Audit Opinion

This study aims to assess empirically the partial effect of Profitability, Liquidity, Solvability, and Growth of the Company on Going Concern Audit Opinion. This research is a type of quantitative research. Withdrawal of research hypotheses using the basis of Agency Theory, supported by previous studies that have variable similarities. Research Samples are 12 Mining Companies listed on the Indonesia Stock Exchange. Research variables include Profitability, Liquidity, Solvability, Company Growth and Going Concern Audit Opinion. The type of data used is secondary data from the collection of financial report documents. Using descriptive statistical techniques and assisted logistic regression SPSS 25.0 for data analysis. In addition, this study uses the feasibility test of the Regression model. The results showed that partially Profitability, Solvability and Company Growth had an effect on Going Concern Audit Opinion. While Leverage partially has a positive effect on Going Concern Audit Opinion. Based on the simultaneous test of KAP Reputation, Profitability, Leverage, Solvability, Leverage and Company Growth have a positive effect on Going Concern Audit Opinion. Determination, Profitability, Solvability and Sub -idiaries Growth is 26.6%. One suggestion that is given is that you need to add another variable that can complement the variable gab. So that it can produce 100% of Going Concern Audit Opinion indicators.

Influence of integrity, independence, professional skepticism, and audit situation on audit opinion

In forming an audit opinion, some aspects need to be considered by state auditors. This study aims to investigate the impact of integrity, independence, professional skepticism, and audit situation on audit opinion in the context of auditing state institutions by state auditors. Cluster proportional sampling was used to sample 52 auditors who worked at the Directorate General of Audit I, BPK RI. The analysis was conducted using structural equation modeling and partial least squares with SmartPLS 4 software. The results revealed that integrity and independence positively affected audit opinion. Professional skepticism and audit situations do not affect audit opinion. The results will provide input to the BPK RI in guiding the development of auditor competencies to improve the quality of audit results. This study concludes that auditors believe that when they demonstrate integrity and independence, the accuracy of audit opinion will increase. This is because, with these qualities, an auditor will have courage, honesty, and responsibility and will not be unduly influenced. Although previous studies have extensively examined the impact of these factors in the context of audit firms auditing commercial companies, this is a novel study in the context of audits conducted by state auditors for state institutions.

Digital transformation and corporate audit risk: Mediating effects of auditor behavior

Digital transformation has emerged as a critical factor in shaping the modern business landscape, with significant implications for corporate governance and audit risk. This study examines how digital transformation affected corporate audit risk in Chinese A-share listed companies from 2011 to 2022. Employing comprehensive empirical analyses, we discover that corporate audit risk is greatly decreased by digital transformation, with this relationship partially mediated by changes in audit fees, audit input, and audit opinions. The effects are more pronounced in state-owned firms. Our findings highlight the importance of integrating digital tools in auditing practices to mitigate risk and enhance audit quality. This study contributes to the understanding of how digital transformation influences auditor behavior and audit processes, providing valuable insights for policymakers and corporate managers in the digital era.

Management changes drive auditor switching in Indonesian companies

This study investigates the influence of audit opinions, management changes, and company growth on auditor switching, with financial distress as a moderating variable, in transportation and infrastructure companies listed on the Indonesia Stock Exchange from 2018 to 2021. Using purposive sampling, 48 companies were selected, resulting in 192 data points analyzed using Partial Least Square (PLS). Results show that management changes significantly impact auditor switching, while audit opinions and company growth do not. Financial distress does not moderate these relationships. The findings underscore the importance of management changes in auditor decisions and suggest further research should explore additional factors and extend the study period for more comprehensive insights. Highlight: Management Changes: Significantly impact auditor switching. Audit Opinions and Growth: No significant effect on switching. Financial Distress: No moderating effect on studied relationships. Keyword: auditor switching, management changes, financial distress, audit opinions, company growth

Human development and the quality of financial reporting among the local governments in Indonesia

We investigate whether a local government’s level of human development is associated with its financial reporting quality. We use audit opinions and accruals management to capture financial reporting quality and manually collected data from our sample of 4,254 financial reports of Indonesian local governments from 2010 to 2018. We find that local governments whose citizens have a higher Human Development Index (HDI) and on each dimension of human development are more likely to receive an unqualified audit opinion on their financial reports. However, we find that local governments with a higher development index are more likely to use accruals management through revenue overestimation or expense underestimation in preparing the statement of operations. Our results suggest that employees of higher quality, as indicated by a higher HDI, have a greater ability to follow accounting rules resulting in a cleaner audit opinion. However, they might opportunistically use their judgments in making accounting estimates. Finally, our study contributes to the literature by providing insight into how human development and its dimensions are associated with the quality of financial reporting, especially in the public sector in developing countries.

PENGARUH UKURAN PERUSAHAAN, OPINI AUDIT DAN PERGANTIAN AUDITOR TERHADAP KETEPATAN WAKTU PENYAMPAIAN LAPORAN KEUANGAN

The study aims to examine the effect of Company Size, Audit Opinion, and Auditor Turnover on the timeliness of financial reporting. The population in this study is the consumer cylclicals sector companies listed on the Indonesia Stock Exchange for the period 2020-2022. The sampling method used was a purposive sampling method in order to obtain 87 companies. The total data processed in this study were 261 data. The type of data used is secondary data in the form of annual financial reports for companies in the consumer cyclicals sector listed on the Indonesia Stock Exchange for the period 2020-2022. The data analysis method used in this study is logistic regression with the help of SPSS software version 24. The results of the study prove that all variables of Company Size, Audit Opinion, and Auditor Turnover together positively influence the timeliness of financial reporting. Then the result of the study partially proves that Company Size has no significant effect on the timeliness of financial reporting, then Audit opinion and Auditor Turnover has a significant positive effect on the timeliness of financial reporting.

PENGARUH OPINI AUDIT BPK DAN BELANJA MODAL TERHADAP KINERJA KEUANGAN PEMERINTAH DAERAH

This study analyzes the Effect of BPK Audit Opinion and Capital Expenditure on Local Government Financial Performance in West Java Province Cities and Regencies in 2018- 2021. This type of research uses quantitative research methods. The population and sample in this study were 108 cities and districts with a period of 4 years. The population and samples are West Java cities and regencies located in the Directorate General of Financial Balance, Ministry of Finance and the Financial Audit Agency which publishes the results of budget realization reports and inspection results. Retrieved from https://jabar.bpk.go.id and https://djpk.keimeinkeiui.go.id websites. The data analysis technique uses panel data regression analysis using Eviews 9.0 software. The results showed that the BPK Audit Opinion had a negative effect on the financial performance of local governments, while Capital Expenditure had a positive effect on the financial performance of local governments.

Nineteenth century audit reports: Evolution from free-form to standardised wording

The research comprises a case study focussed on the wording of 34 audit reports of the British South Africa Company (BSAC), which Cecil Rhodes established by Royal Charter to colonise Rhodesia from 1889 to 1924. The accounts were audited by Cooper Brothers & Co., now PricewaterhouseCoopers. The research analyses three audit-report characteristics that influenced audit-report wording. Of the 34 audit reports, eight contained qualified (i.e., unfavourable) audit opinions. Based on verbatim annual general meeting minutes and private correspondence, we provide evidence of the effect of the audit qualifications. The research further analyses the evolution of the audit-report wording over the period. Initially, the auditors customised the audit-report wording. Each year, they made micro changes to improve the precision of the wording. Then, in 1911, well in advance of any audit-report regulations, the wording became standardised and remained so until the end of the study period. The paper adds insights into why auditors standardised audit-report wording. We conjecture that years of struggling with customised wording prompted the auditors to adopt standardised wording. We do not know whether this decision applied just to the BSAC audit reports, or whether 1911 heralded standardised audit-report wording for all Cooper Brothers & Co. audit reports.

Measuring Audit Quality with Surprise Scores: Evidence from China and the U.S.

ABSTRACT This study constructs a measure of audit quality that captures the effect of potential factors that are generally unobservable to people outside of the audit firm or client company. Using machine learning and a wide range of data describing audit firm characteristics, audit partners, and public companies in China, this paper constructs the “surprise score,” a new measure of audit quality, calculated as the difference between the predicted probability and the actual value of an audit quality-related event (i.e., the existence of material misstatements, audit adjustments, and nonclean audit opinions). The effectiveness of the surprise score is validated by testing the association between the surprise score and penalties or audit firm changes. The proposed approach is applied to U.S. data to generalize its application. The surprise score adds value to existing audit quality measures and can help regulators to make better-informed decisions about audit quality. Data Availability: Except for the data privately provided by CICPA and MFC, other datasets are available from the public sources cited in the text. JEL Classifications: M41; M42.

DETERMINAN YANG MEMPENGARUHI OPINI AUDIT ATAS LAPORAN KEUANGAN PEMERINTAH DAERAH KABUPATEN/KOTA DI SUMATERA UTARA

This research aims to analyze the determinants that influence audit opinions on district/city government financial reports in North Sumatra in the form of the level of disclosure and audit findings on regional government financial reports. The number of samples used in this research was 33 Regency/City LKPD in North Sumatra province period 2019-2021. This research was processed using SPSS (Statistical Package for the Social Science) software version 26. The focus of the research is partial and simultaneous in the multiple linear regression research model. The results of this research show that partially the level of disclosure has no effect on audit opinion and audit findings have no effect on audit opinion, but simultaneously the level of disclosure and audit findings have an effect on audit opinion.

The Effect of Financial Ratio, Company Size, Previous Audit Opinion, and Auditor's Reputation on Going Concern Audit Opinion on Mining Companies Listed on the Indonesia Stock Exchange 2014-2018

The Objective of this research is to examine and analyze the effect of financial ratios, company size, previous year's audit opinion, and auditor's reputation on going concern audit opinions on mining companies listed on the Indonesian stock exchange in 2014-2018. A total of 15 mining companies were studied in this study. The sample selection used purposive sampling method. Data were analyzed using logistic regression. The results obtained are simultaneously, liquidity, profitability ratios, leverage ratios, company size, previous year's audit opinion and auditor's reputation affect going concern audit opinions, while partially, liquidity ratios, profitability ratios, leverage ratios, company size and auditor's reputation s have no effect on going concern audit opinion. The previous year's audit opinion has an effect on going concern audit opinion.

INFLUENCE OF REGIONAL GOVERNMENT (PEMDA) CHARACTERISTICS ON AUDIT OPINION WITH REGIONAL GOVERNMENT (PEMDA) FINANCIAL PERFORMANCE AS A MEDIATION VARIABLE

Purpose - With local government financial performance serving as a mediating variable, this study intends to investigate the impact of local government characteristics, whose indicators are the degree of reliance and audit results on audit opinions Design/methodology/approach - The Regency/City Government in Banten Province from 2018 to 2021 serves as the study's population. In this investigation, 8 samples were evaluated using the saturation sampling technique. The financial reports of each PEMDA, whose information was collected from the Banten Province Representative Office of the Financial Audit Board (BPK), served as the source of the data for this study. Logistic regression analysis and mediation regression analysis were the analytical techniques employed in this investigation Finding - The outcomes of this study suggest that the amount of reliance and audit findings have a favorable effect on audit opinion, but that this effect is stronger when measured using financial performance as a mediating variable. Originality - Paper Type – Research Paper Keywords: Dependency Level, Audit Findings, Audit Opinion, Local Government Financial Performance

The Effect of Auditor Opinion, Solvency, Company Size, and Audit Tenure on Audit Delay in Manufacturing Companies

This research aims to test and analyze the influence of audit opinion, solvency, company size, and audit tenure on audit delay. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange in 2017-2021. This research uses quantitative methods with multiple linear regression analysis tools. The sampling method used purposive sampling with a total sample of 86 companies during 2017-2021. The results of this research show that partially audit opinion and company size have a positive effect on audit delay, while solvency and audit tenure have no effect on audit delay.

The Effect of Auditor Opinion, Solvency, Company Size, and Audit Tenure on Audit Delay in Manufacturing Companies

The Effect of Auditor Opinion, Solvency, Company Size, and Audit Tenure on Audit Delay in Manufacturing Companies

Auditor's professional judgment and opinion

The paper is devoted to such an actual problem in the field of audit activity as professional judgment and an auditor's opinion. A proper clarification of the logical content of these concepts significantly affects the effectiveness of the audit according to requirements of International Standards on Auditing (ISA). To date, in scientific publications the various approaches to the interpretation of the given concepts are expressed. A significant part of the authors is limited to general definitions and only some of them make attempts to substantiate their research with the laws and categories of logic. At the same time, native authors in every possible way avoid a full-fledged logical definition of content of the concept "auditor's opinion". The main reason is that there is an unsuccessful translation from English terminology into Ukrainian. In some cases, the term "opinion" has been translated as "opinion", and in others it has been called "conclusion". Therefore, if the term "opinion" is preferred, it turns out that the audit begins with an auditor's opinion and ends with it. An auditor's opinion fully encompasses such forms of logical thinking as concepts, judgments and inferences. The paper not only shows the misinterpretation of the concepts of "professional judgment" and "auditor's opinion" in a number of scientific studies. Also it is proposed the own vision of the cognition process in the auditing field based on the laws of general and dialectical logic. A related scheme of an auditor's professional judgment is given. From this scheme it can be seen that the opinion of a professionally competent auditor from the very beginning of the audit is being transformed through rationale into the concepts and requirements of the ISA. Further, an auditor's rationale is being transformed into judgments and conclusions. Based on them, as a result of proving or proving and planning, the specific conclusions of an auditor are formed as a report. The paper states that an auditor's professional judgment, like the professional judgment of other specialists, is subordinated to the general laws of logic. Its specificity lies in the fact that it is carried out with professional skepticism in conditions of uncertainty and risk and is subject to the requirements of legislation and ISA.

Going Concern Audit Opinion: Does it Depend on Disclosure and Previous Years’ Audit Opinion?

A going Concern Audit Opinion is an opinion given by an independent auditor to the auditee. This opinion contains the auditor's assessment regarding the company's sustainability. This opinion is one factor that becomes a consideration for management, creditors, investors, and other stakeholders in making decisions. The population in this study were all companies listed on the Indonesia Stock Exchange for the 2017 - 2019 period. The sample selection technique used purposive sampling, and 25 companies were obtained, so 50 samples were processed. Hypothesis testing uses multivariate analysis, namely logistic regression, with E-Views 10 software. This research aims to determine the effect of disclosure and the previous year's opinion on going concern audit opinion with opinion shopping as a moderating variable. This research found that disclosure did not affect the acceptance of going-concern audit opinions. Still, the previous year's opinion positively affected the acceptance of going-concern audit opinions. These results indicate that investors have to be careful in reading the audit opinion of the previous year regarding the company's going concern.

Opini Audit, Nilai Aset, Dan Kemandirian Daerah Sebagai Determinan Audit Delay: Studi Empiris Pada Pemerintah Provinsi Di Indonesia 2018-2021

Since 2003, Indonesia has gone through a financial reform. Based on Law No. 13/2004, the Audit Board of Indonesia (BPK) is required to submit the audit report (LHP) including the audit opinion to the Regional People’s Representative Council (DPRD) no later than 2 (two) months after the unaudited financial report is submitted by the local government. This becomes BPK's guideline in completing its audit to avoid delays. During 2017-2021, the audit opinion on local government financial reports (LKPD) has increased. This increase in opinion includes an increase in the unqualified opinion (WTP) to 92.4% of the 2021 financial statements from 76% in 2017. This study aims to answer research gaps related to the effect of audit opinion, local government size through asset value as a proxy, and local autonomy on audit delay. Furthermore, it is important to obtain empirical evidence about the effect of opinion, local government size, and local autonomy on audit delay.

QUALITATIVE ANALYSIS ON THE INTERFERENCE AND CAUSALITY BETWEEN ACCOUNTING AND AUDITING FOR ROMANIAN COMPANIES “TOP TRADED” LISTED AT THE BUCHAREST STOCK EXCHANGE

The instability generated by legislative changes, price volatility, difficulties in obtaining and maintaining financial stability are realities that characterize the current economic situation, and the first indications of significant uncertainties regarding the continuity of an entity's activity can be obtained from the financial statements and the audit report, consequently, it becomes essential to assume the responsibilities that administrators and financial auditors have in assessing the adequacy of the going concern principle. The objective of the research is the analysis of how the auditor, by belonging to the Big 4 or Non-Big 4 category, the audit opinion, the number of key audit aspects included in the audit report, confirms the positive or negative implications on the principle of business continuity. The research methodology involved qualitative analysis by manually extracting data from the audit reports issued for the period 2018-2022, for a sample that includes 45 companies "top traded" from Romania listed on the Bucharest Stock Exchange (BSE). Following the analysis, it was found that the assumption of continuity of activity in the preparation of the individual annual financial statements, assumed by the management of the company, is adequate in 78% of the cases for the studied sample.