Track: Undergraduate Student Paper Competition

Abstract

Going concern audit opinion is an opinion expressed by the auditor regarding the uncertainty of the company's viability caused by several factors. The purpose of the going concern audit opinion is to provide a good early warning for business entities to immediately improve their business continuity. The auditor is responsible for evaluating, analyzing whether the company or business entity has substantial doubts about the company's condition regarding the company's ability to continue as a going concern. The purpose of this study is to determine the effect of audit quality, opinion shopping, financial condition, and debt default, either simultaneously or partially affecting going concern audit opinion. The population used in this study are manufacturing companies listed on the Indonesia Stock Exchange for the food and beverage sub-sector in 2016-2020. The number of samples of the food and beverage sub-sector in 2016-2020 are 14 companies with a total sample data of 70 companies analyzed in this study. In this study, hypothesis testing was carried out using descriptive analysis and logistic regression. The study results show that audit quality, opinion shopping, financial condition, and debt default have a simultaneous influence on going-concern audit opinion. In the partial test, the financial condition partially has a positive influence on going concern audit opinion. Meanwhile, audit quality, opinion shopping, and debt default have no influence on going concern audit opinion. It is hoped that this study can be used by investors as a reference for considerations regarding investment decisions to pay more attention to the company's financial condition. This study is expected to be a guide, information, and insight for companies and individuals in developing financial statements so that they do not provide financial reports that are lacking and are in accordance with applicable accounting standards.