ANALYSIS OF DETERMINANTS AFFECTING GOING CONCERN AUDIT OPINION (Empirical Study on Consumer Cyclicals Companies Listed on Indonesia Stock Exchange 2020-2023)

Abstract

Determining a going concern opinion can be challenging due to the complexity and variability that must be assessed. This study aims to analyze and describe the effect of Profitability, Liquidity, Leverage, Firm Size, Audit Quality, and Audit Lag on the acceptance of going concern audit opinions in consumer cyclicals companies listed on Indonesia Stock Exchange (IDX) from the period 2020 to 2023.

This study uses secondary data derived from the financial statements of all consumer cyclicals sector companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. The research sampling was carried out using purposive sampling method with certain criteria in sampling. A total of 56 companies were tested with details of 224 samples throughout the four years research span. The analysis method used is logistic regression analysis.

The results of this study shows that: (1) Profitability has no significant effect on the acceptance of going concern audit opinion; (2) Liquidity has a negative influence on the acceptance of going concern audit opinion; (3) Leverage has no significant effect on the acceptance of going concern audit opinion; (4) Firm size has no significant effect on the acceptance of going concern audit opinion; (5) Audit quality has a negative influence on the acceptance of going concern audit opinion; (6) Audit lag has no significant effect on the acceptance of going concern audit opinion. The results obtained from the Nagelkerke R Square test were 32.1%. It can be concluded that there are 67.9% of other independent variables that influence the acceptance of going concern audit opinions, outside of the independent variables that have been tested in research.