DETECTION OF GOING CONCERN AUDIT OPINION BASED ON DISCLOSURE, FINANCIAL CONDITION AND OPINION SHOPPING
DOI:
https://doi.org/10.32493/jiaup.v8i1.3563Keywords:
Acceptance of Going Concern Audit Opinion, Disclosure, Financial Condition, Opinion Shopping.Abstract
Going concern shows assumptions in the financial reporting of an entity relating to the viability of an undertaking. Therefore, the role manager is critical to realize its business continuity. This research aims to analyze the influence of disclosure, financial condition, and opinion shopping on the acceptance of audit opinions going concern on manufacturing companies of various industries listed on the Indonesia Stock exchange for a period of years 2014 – 2016. This article uses the verificative method and the sample selection using the purposive sampling method. Sample selection results obtained 90 company data. This study used the analysis of logistic regression, and the results showed that the opinion shopping influence on the acceptance of the audit opinion of going concern while the disclosure and financial condition does not affect the acceptance of the audit opinion Going concern.
References
Amin, K., Krishnan, J., & Yang, J. S. (2014). Going concern opinion and cost of equity. Auditing: A Journal of Practice & Theory, 33(4), 1-39.
Ayu, P. D., Ida, R., & Apit, S. W. (2019, May). The Influence of Company Size and Audit Fee on Audit Quality. In 1st International Conference on Economics, Business,
Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.
Blay, A. D., Geiger, M. A., & North, D. S. (2011). The auditor's going-concern opinion as a communication of risk. Auditing: A Journal of Practice & Theory, 30(2), 77-102.
Carson, E., Fargher, N. L., Geiger, M. A., Lennox, C. S., Raghunandan, K., & Willekens, M. (2012). Audit reporting for going-concern uncertainty: A research synthesis. Auditing: A Journal of Practice & Theory, 32(sp1), 353-384.
Chen, P. F., He, S., Ma, Z., & Stice, D. (2016). The information role of audit opinions in debt contracting. Journal of Accounting and Economics, 61(1), 121–144. doi:10.1016/j.jacceco.2015.04.002
Elmawati, D., & Yuyetta, E. N. A. (2014). Pengaruh Reputasi Kantor Akuntan Publik (Kap), Audit Tenure, Dan Disclosure Terhadap Penerimaan Opini Audit Going Concern (Doctoral dissertation, Fakultas Ekonomika dan Bisnis).
Foster, B. P., & Shastri, T. (2016). Determinants of going concern opinions and audit fees for development stage enterprises. Advances in accounting, 33, 68-84.
George-Silviu, C., & Melinda-Timea, F. (2015). New Audit Reporting Challenges: Auditing the Going Concern Basis of Accounting. Procedia Economics and Finance, 32, 216–224. doi:10.1016/s2212-5671(15)01385-4
Hapsoro, D., & Suryanto, T. (2017). Consequences of going concern opinion for financial reports of business firms and capital markets with auditor reputation as a moderation variable: an experimental study. European Research Studies, 20(2), 197.
Haron, H., Hartadi, B., Ansari, M., & Ismail, I. (2009). Factors influencing auditor’s going concern opinion. Asian Academy of Management Journal, 14(1), 1-19.
Harris, R., & Meiranto, W. (2015). Pengaruh Debt Default, Disclosure, Opini Audit Tahun Sebelumnya, Ukuran Perusahaan, dan Opinion Shopping terhadap Penerimaan Opini Audit Going Concern. Diponegoro Journal of Accounting, 4(4), 298-308.
Jamaluddin, M. (2018). The Effect Of Financial Distress And Disclosure On Going Concern Opinion Of The Banking Company Listing In Indonesian Stock Exchange. International Journal of Scientific Research and Management, 6(01).
Krishnan, G. V., & Wang, C. (2014). The relation between managerial ability and audit fees and going concern opinions. Auditing: A Journal of Practice & Theory, 34(3), 139-160.
Mayew, W. J., Sethuraman, M., & Venkatachalam, M. (2014). MD&A Disclosure and the Firm's Ability to Continue as a Going Concern. The Accounting Review, 90(4), 1621-1651.
Murtin, A., & Anam, C. (2016). Pengaruh Kualitas Audit, Debt Default Dan Kondisi Keuangan Perusahaan Terhadap Penerimaan Opini Going Concern. Journal of Accounting and Investment, 9(2), 197-207.
Newton, N. J., Persellin, J. S., Wang, D., & Wilkins, M. S. (2015). Internal control opinion shopping and audit market competition. The Accounting Review, 91(2), 603-623.
O'Reilly, D. M. (2010). Do investors perceive the goingâ€concern opinion as useful for pricing stocks?. Managerial Auditing Journal.
Rianto, K., Hasan, A., & Al Azhar, A. (2016). Pengaruh Kualitas Auditor, Debt Default, Opinion Shopping, Opini Audit Tahun Sebelumnya Dan Reputasi Kap Terhadap Penerimaan Opini Audit Going Concern (Studi Empiris Pada Perusahaan Manufaktur Di Bei). Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 3(1), 264-278.
Rif'at, A., & Sulistyowati, W. A. (2019). PREDICTING AUDIT DELAY OF CONSUMER GOODS COMPANIES LISTED IN INDONESIA STOCK EXCHANGE. EAJ (ECONOMICS AND ACCOUNTING JOURNAL), 2(1), 01-08.
Rosnidah, I., Sulistyowati, W. A., & Yulianto, A. (2017). The Effects of Ethical Orientation and Moral Intensity on the Ethical Decision of an Auditor. Devotio: Journal of Business and Economic Studies, 11(1), 55-70.
Rosnidah, I., Sulistyowati, W. A., & Yulianto, A. (2018). DILEMA ETIS PADA CALON AUDITOR: SEBUAH EKSPERIMEN. Jurnal Akuntansi Indonesia, 7(2), 35-48.
Salleh, K., & Jasmani, H. (2014). Audit Rotation and Audit Report: Empirical Evidence from Malaysian PLCs over the Period of Ten Years. Procedia - Social and Behavioral Sciences, 145, 40–50. doi:10.1016/j.sbspro.2014.06.009
Sundgren, S., & Svanström, T. (2014). Auditorâ€inâ€charge characteristics and goingâ€concern reporting. Contemporary Accounting Research, 31(2), 531-550.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
JIAUP: Jurnal Ilmiah Akuntansi Universitas Pamulang have CC-BY-SA or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work.
In developing strategy and setting priorities, JIAUP: Jurnal Ilmiah Akuntansi Universitas Pamulang recognize that free access is better than priced access, libre access is better than free access, and libre under CC-BY-SA or the equivalent is better than libre under more restrictive open licenses. We should achieve what we can when we can. We should not delay achieving free in order to achieve libre, and we should not stop with free when we can achieve libre.
