Concern Opinion Research Articles

Determination of Going Concern Opinion In Manufacturing Companies Listed on The Indonesia Stock Exchange (IDX)

The existence of the Covid 19 pandemic provides impact to companies in Indonesia, especially in the world of finance especially auditors, there are perspective new related opinion namely going concern towards evaluation performance company as audite, then objective exists study This is for analysis the most important factors influential For gift going concern opinion on IDX Manufacturing Companies from 2018 to 2021, application method with regression logistics on 280 samples with purposive sampling method, Based on results research, there is findings that KAP reputation , interaction between debt to asset ratio and debt to equity ratio, as well as interaction between profitability with size company own connection negative with gift going concern audit opinion. Temporary that is , annual audit opinion previously own connection positive with gift going concern audit opinion. However, no found significant relationship between profitability, debt to asset ratio, debt to equity ratio, and size company with going concern audit opinion, in general overall, findings study This show that KAP reputation, annual audit opinion previously, as well interaction between debt to asset ratio and debt to equity ratio, and interactions between profitability with size company can become indicator beginning for internal auditors give going concern opinion for evaluate health finance and sustainability company.

Pengaruh Financial Distress dan Profitabilitas terhadap Opini Going Concern dengan Opini Shopping sebagai Variabel Pemoderasi

The purpose of this research is to determine the effect of financial distress and profitability on going concern opinion with opinion shopping as a moderating variable. This research used purposive sampling method as a sampling technique with 42 selected companies from the properties & real estate sector listed on the Indonesia Stock Exchange for the 2018-2020 period. This research uses secondary data obtained using documentation techniques from annual reports and financial reports. The data is analyzed using logistic regression analysis techniques using SPSS software. The results of this research showed that financial distress has no effect on going concern audit opinion while profitability has an effect. In addition, this research also showed that opinion shopping is unable to moderate the effects of these two variables on going concern opinion.

The Effect of Using Machine Learning Algorithms Alternatives on the Prediction Accuracy of Going Concern Opinion

The Effect of Using Machine Learning Algorithms Alternatives on the Prediction Accuracy of Going Concern Opinion

Financial, Non-Financial Indicators dan Corporate Governance terhadap Prediksi Financial Distress Perusahaan Sektor Transportasi

Financial distress is a condition where the company experience a deteriorating stage of the financial situation before bankruptcy. This study aimed to prove the influence of financial, non-financial and corporate governance indicators on financial distress in transportation sector listed on the Indonesian Stock Exchange periods 2016-2020. This study used the Springate method (S-score) to measure the level of financial distress. The sample was obtained by purposive sampling method in obtain 21 companies in transportation sector. The data used is secondary data in the form of annual reports from the publication of Indonesia Stock Exchange. Data analysis technique used in this study is multiple linear analysis panel data which is processed using Eviews 10 software. The hypothesis is obtained from previous research and various theories from other sources. The results of this study indicate that interest coverage ratio has a positive influence on financial distress and going concern opinion has a negative influence on financial distress. Meanwhile, long-term debt to equity ratio, age of company, independent board of commissioners, and institutional ownership did not has a influence on financial distress.

The Influence of Audit Quality, Company Financial Condition, Previous Year's Audit Opinion, Company Growth on Acceptance of Going Concern Audit Opinion in Companies Listed on the IDX

The responsibilities of auditors currently do not only focus on assessing the fairness of financial statements and detecting fraud, but also on assessing the company's ability to maintain its survival. This is due to the demands of the shareholders to the auditor to provide early warning about the prospects of a company as consideration before deciding an investment decision. The research's goals were to examine the effect of the audit opinion received in the quality of the audit, financial condition of the company, previous years against the acceptance and the company's growth of a going concern opinion. The samples of this research were the companies that suffered losses three years in a row and were listed on the Indonesian Stock Exchange (ISE) from 2011 to 2013. The hypotheses were tested using a logistic regression method. The results of this research showed that the quality of audits and previous audit opinions had a significant effect, but the financial variables and growth companies weren't significantly influenced by going concern opinions.

Analisis Faktor – Faktor Yang Mempengaruhi Opini Audit Going Concern Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Tahun 2017-2020

The Indonesia Stock Exchange (IDX) has explained that there are still a number of companies whose businesses have been discontinued, which still need to be questioned or reviewed. This is because not all issuers listed on the Indonesia Stock Exchange have canceled their prospective future business (kelangsungan hidups). One of the criteria for a company that is said to have no theft attempts is if the company has no income or continuous loss performance. In order to collect data that is used as a support in this discussion, the authors use data collection methods, namely: Documentation method is a method used as a basis for analyzing data in this study by collecting data, how to record, collect and study company data related to financial reports published on the official website www.idx.co.id. Based on the results of the analysis and discussion regarding the influence of Profitability, Previous Years' Pemeriksaan Pendapatanons and Company Size on Kelangsungan hidup Pemeriksaan Pendapatanons in Manufacturing Companies Registered on the IDX in 2017-2019, it can be concluded as follows: Based on the calculation results obtained tcount > ttable, namely 1,188 > 1 .98472 and a sig value of 0.038 > 0.05, then H1 is rejected and H0 is accepted. So it can be concluded that profitability has no positive effect on kelangsungan hidup pendapatanon. Based on the calculation results, tcount > ttable is 2.109 > 1.98472 and a sig value of 0.04 <0.05, then H2 is accepted and H0 is rejected. So it can be concluded that the previous pemeriksaan pendapatanon had a positive effect on kelangsungan hidup pendapatanon. Based on the calculation results, tcount > ttable is 3.492 > 1.98472 and a sig value of 0.02 <0.05, then H2 is accepted and H0 is rejected. So it can be concluded that company size has a positive effect on kelangsungan hidup pendapatanon. Based on the calculation results, tcount > ttable is 3.287 > 1.98472 and a sig value of 0.01 <0.05, then H2 is accepted and H0 is rejected. So it can be concluded that profitability, previous pemeriksaan pendapatanon and company size have a positive effect on kelangsungan hidup pendapatanon.
 Keywords: Profitability, Previous Year's Opinion, Company Size, Going Concern Opinion

KONSERVATISME AUDITOR PADA OPINI KELANGSUNGAN HIDUP DENGAN MODERASI MANAJEMEN LABA

The purpose of this research is to find out whether auditor conservatism influences the view of business continuity trading on the Indonesia Stock Exchange. Company profiles on www.idx.co.id, the website of the Indonesia Stock Exchange, were analyzed for 2017 to 2021. In this study data analysis approach, panel data regression and logistic regression are applied, and the outcomes of the sample findings that have been chosen are a total of 1,875. The research findings are certainly able to state that auditor conservatism has a significant effect on earnings management. These results are certainly able to state that auditor conservatism moderated by earnings management has a significant effect on going concern opinion.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI OPINI GOING CONCERN PADA PERUSAHAAN MANUFAKTUR PERIODE 2018-2020

This research was conducted to examine the effect of liquidity, profitability, growth,firm size, and previous year's audit opinion on the formation of going concern opinionson manufacturing sector that listed on the Indonesia Stock Exchange (IDX) in the 2018-2020 period. The sample was selected by purposive sampling method and the valid data were 32 companies. The data processing technique uses logistic regression analysis supported by SPSS software (Statistical Product and Service Solution) 25 program for Windows and Microsoft Excel 2019. The results show that liquidity, profitability, growth and firm size have no effect on the formation of a going concern opinion. While, the previous years audit opinion had a positive effect on the formation of a goingconcern opinion.

Dampak Konservatisme Auditor terhadap Profit Management dan Opini Going Concern pada Perusahaan Bursa Efek Indonesia

This research aims to determine the effect of the quality of earnings management relationship auditors on Going Concern opinions in companies listed on the IDX for the 2016-2020 period. The quantitative method uses secondary data from independent auditor reports and the annual financial reports of non-manufacturing companies listed on the IDX for the 2016-2020 period. This research used a purposive sampling method with a sample of 690 from 789 companies with a final number of 3171, resulting in observation data. Data was tested using Eviews software. The dependent variable is in the form of Business Continuity Opinion. The independent variable is Profit Management. Moderating variables are Big 4. Control variables are the Market value of company assets, Firm size, Leverage, ROA, Market book ratio, Company age, Sales growth and CFO. The research results show that the Big 4 has a significant relationship with Earnings Management. Then Earnings Management cannot strengthen a significant relationship between the Big 4 and the Going Concern opinion. Thus, testing on 11 variables only creates 1 variable in line with the hypothesis, namely, the Big 4 variables have a significant negative relationship to Earnings Management. Profit Management variable testing has no significant relationship to the Going Concern opinion.

Effect of Audit Delay, Audit Fee, Audit Tenure, and Going Concern Opinion for Voluntary Auditor Switching

This study examines the effect of audit delay, fees, tenure, and opinion going concern on voluntary auditor switching in financial sector companies listed on the IDX from 2017 to 2022. This research uses a quantitative approach with secondary data and a purposive sample of 222 companies. using logistic regression analysis with SPSS version 26. The results revealed that audit delay has a significant positive effect, while audit tenure has a significant negative effect on voluntary auditor switching. However, audit fees and going-concern opinions have no significant effect on voluntary auditor switching

The Influence of Audit Opinion, Financial Distress, Company Growth, and Going Concern Opinion on Auditor Switching

The purpose of this study is to analyze the effect of audit opinion, financial distress, company growth, and going concern opinion on auditor switching in companies listed on the IDX. In this study using secondary data in the annual reports of manufacturing companies sourced from www.idx.co.id. The population in this study were 42 companies in the consumer goods sector listed on the Stock Exchange 2017-2019 and the samples obtained were 24 companies. The sampling method used in this research is purposive sampling method. The research analysis method used logistic regression analysis. The results of the analysis in this study indicate that audit opinion, financial distress, company growth and going concern opinion do not have a significant effect on auditor switching.

Factors Influencing Decision to Issue Going Concern Opinions in the Post-COVID-19 Era: Tales from the Big Four Audit Firms in Malaysia

Factors Influencing Decision to Issue Going Concern Opinions in the Post-COVID-19 Era: Tales from the Big Four Audit Firms in Malaysia

Non-GAAP Disclosure Following Going Concern Opinions

This paper examines whether firms change their non-GAAP reporting behavior after receiving a first-time going concern opinion (GCO). I find that the likelihood of disclosing non-GAAP earnings decreases while the quality of disclosed non-GAAP earnings increases following the receipt of a first-time GCO. The results are consistent with the notion that managers change their non-GAAP reporting behavior during the period of heightened investor scrutiny. Further analyses indicate that such changes in non-GAAP disclosure are more pronounced in firms with weaker corporate governance.

The Effect of Firm Size, Liquidity, and Leverage on Going Concern Audit Opinion with Firm Value as a Consequent Variable

This study aims to determine the effect of firm size, liquidity, and leverage on going concern opinion with firm value as a consequent variable. The population in this study are mining sector companies listed on the Indonesia Stock Exchange in 2017-2021. The sampling method used is purposive sampling. The analysis technique used is logistic regression and simple regression. The results of this study indicate that firm size has no significant effect on going-concern audit opinion, liquidity and profitability have a significant effect on going-concern audit opinion, and going-concern audit opinion has no significant effect on firm value.

Effect of Audit Tenure, Audit Fee, Size of Public Accounting Firm, Auditor Specialization, and Audit Rotation on Audit Quality

Audit quality is all possibilities (probability) where the auditor when auditing the client's financial statements can find violations that occur in the client's accounting system and report them in the audited financial statements, where in carrying out their duties the auditor is guided by auditing standards and the relevant public accountant code of ethics. This study aims to examine the effect of audit tenure, audit fees, size of public accounting firm, auditor specialization, and audit rotation on audit quality. Audit quality is measured using a dummy variable by looking at going concern opinions made by independent auditors, audit fees are measured by Ln (natural logarithm), audit tenure is measured by calculating the number of years in which the same auditor has engaged the client, size of public accounting firm, specialization auditors, and rotation is measured using a dummy variable. The population in this study are Transportation and Logistics Service companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period which have been audited. The sample selection was carried out using purposive sampling method. The analytical method used to test the hypothesis is logistic regression analysis. The results of this study indicate that audit specialization has an effect on audit quality, while audit tenure, audit fees, size of a public accounting firm, and audit rotation have no effect on audit quality.

Audit Effort on Tone Ambiguity in 10-K Filings

This study examines the association between ambiguous words (uncertain and weak modal words) in 10-K filings and audit fees. We find a positive association between ambiguous words in 10-K filings and audit fees. Results show that auditors put more time and effort into analyzing clients’ reports containing more ambiguous words. We conduct a propensity score matching technique to address potential endogeneity in client characteristics, which presents further empirical support for our main results. We re-estimate the main analysis for robustness tests by excluding firms with going concern opinions, firms audited by Big 4, and firms that report a net loss. We find the main results still hold in all robustness tests. The results of this study can be in the interest of multiple stakeholders, such as issuers, investors, auditors, and regulators, in that the 10-K report is mandatory, but the discretion of the management determines the degree of clarity of the text in the 10-K filings. Therefore, the interpretation and decisions of users of these ambiguous reports are non-trivial.

Critical audit matters: litigation, quality and conservatism

PurposeThis study aims to address the following four research questions: first, whether auditors report critical audit matters (CAMs) to shield themselves against possible litigation; second, whether reporting quality affects auditors’ propensity to report CAMs; third, whether auditors’ tenure length – reflecting familiarity with clients’ financial reporting – affects their likelihood to report CAMs; and fourth, whether auditors’ conservatism increases the likelihood of CAMs reporting.Design/methodology/approachData are manually collected from audit reports including CAMs in 10-K, then financial data are collected from the Capital IQ database, and market data are collected from the CRSP database. Using propensity score matching, the initial sample of companies with CAMs is matched with companies without reported CAMs. Performance adjusted discretionary accruals, real earnings management proxy, Khan and Watts’ (2009) C-score, propensity to issue a going concern opinion, Dechow et al.’s (2011) F-Score, Rogers and Stocken’s (2005) model and Houston et al.’s (2010) model are used to measure reporting quality, auditor conservatism, misstatement risk and litigation risk, respectively.FindingsThe results do not show that auditors report CAMs opportunistically to shield themselves from litigation risk. However, the results do suggest that auditors have a greater tendency to report CAMs when reporting quality is low and when they are more conservative. On the other hand, they have less tendency to report CAMs in their first year of engagement.Research limitations/implicationsThe findings of this study have important implications for the auditor behavior literature as it shows that, when it comes to reporting CAMs, auditors actually behave objectively and do not report in a trite way. This study also provides early archival evidence on a standard that relates to the first major change to the auditor’s report in decades. To the best of the author’s knowledge, it is the first to provide evidence on the association between auditor conservatism and auditors tendency to report CAMs and the first to triangulate prior research on auditor litigation risk by providing the first archival evidence on the auditors “litigation-shielding” concern.Practical implicationsThis study examines whether auditors attempt to meet the stated objective of reporting CAMs by signaling information about reporting quality. This study demonstrates that reporting CAMs is not a “boilerplate” communication. This study has implications for standards setters, as it shows that CAMs are reported in a way consistent with the objectives of the new standard, namely, via signaling information in the audit report on the quality of the financial statements.Originality/valueIn terms of originality, this paper uses a manually collected sample and, to the best of the author’s knowledge, is the first to focus on auditor’s behavior rather than on investors or clients reactions to CAMs. Also, this paper addresses a recently issued standard using US data and archival approach, rather than experimental. This paper also provides relevant evidence related to concerns raised earlier but were not empirically examined, such as reporting CAMS as “boilerplate” expectations. This paper provides new evidence on the auditors’ behavior with regard to litigation risk.

Toward a better expert system for auditor going concern opinions using Bayesian network inflation factors

We develop an analytical model intended as the first stage in the development of expert systems to improve auditor knowledge in, and assist in the decision process of, Going Concern Opinions (“GCOs”). Our approach is consistent with a design science approach to developing information systems, resulting in an initial artifact, the mathematical model, which can, through iterative design science and behavioral research, inform a technology-based expert system. Based on Bayesian networks, our model provides insights about auditors’ revision, or inflation, of the probability to issue a GCO based on the interrelationship that forms with the incremental existence of one, two, or three publicly observable financial statement risk factors – net operating loss, negative cash flows from operations, and negative working capital. We calculate the revised probabilities using empirical data of GCOs from 2004 to 2015. Results reveal that the incremental relationship (one, two, or three factors present) effectively models expert auditors’ decisions to issue a GCO, and suggests the existence of these measurable inflation factors that represent situational and auditor-specific factors. We also find that Non-Big Four auditors inflate these factors differently than Big Four auditors to arrive at a decision to issue a GCO.

Asymmetric reactions of abnormal audit fees jump to credit rating changes

Considering the inherent stickiness of abnormal audit fees, our study contributes to the literature by decomposing abnormal audit fees into a jump component and long-run sticky component. We investigate whether and how changes in credit ratings asymmetrically affect the jump component of abnormal audit fees. We document a positive association between rating downgrades and the jump component. We find that heightened bankruptcy risk and misstatement risk are the mechanisms that drive this relationship. Further analysis shows that firms experiencing rating downgrades are more likely to receive a going concern opinion and experience longer audit report lags. Taken together, our findings provide direct evidence that credit ratings are significantly associated with abnormal audit fees, particularly with the jump component. Given the serial correlation of abnormal audit fees, our study sheds light on the importance of disaggregation of the abnormal audit fee residuals into the jump and long-run sticky components.

PENGARUH STRUKTUR KEPEMILIKAN, PERTUMBUHAN PERUSAHAAN, DAN OPINI AUDIT TAHUN SEBELUMNYA TERHADAP PENERIMAAN OPINI GOING CONCERN

This study aims to prove empirically the effect of ownership structure, company’s growth, and opinion prior year on the acceptance of going concern opinion. This research was conducted on basic materials sector listed on Indonesia Stock Exchange from 2017-2021 period. Data used is logistic regression. The sample selection was carried out using the purposive sampling method from secondary data in the form a financial statements and found as many as 16 sample companies with a total of 5 years of observations, so the total sample in this study was 80 observational data. Based on the test results, it was found that ownership structure, company’s growth, and opinion prior year have a simultaneous effect of opinion year on acceptance of going concern opinion. Partially, this study proves the influence of opinion prior year on acceptance of going concern opinion. Meanwhile, institusional ownership, managerial ownership, and company’s growth partially have no effect on the acceptance of going concern opinion.