Nonprofit Stakeholder Response to Going-Concern Audit Opinions

2015 ◽  
Vol 32 (3) ◽  
pp. 329-349 ◽  
Author(s):  
Keval Amin ◽  
Erica E. Harris
Keyword(s):  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
Organizational Efficiency ◽  
Audit Opinion ◽  
Going Concern ◽  
Stakeholder Groups ◽  
Service Oriented ◽  
Audit Opinions

Using a sample of industry-diverse nonprofit organizations, we find support for stakeholders’ use of nonprofit going-concern audit opinion (GCO) reports. We study the reactions of the three largest nonprofit stakeholder groups: donors, service recipients, and managers. Our findings suggest that although large (sophisticated) donors respond negatively to a GCO, small (unsophisticated) donors contribute more following a GCO. We also find that service recipients spend more at service-oriented organizations than at charitable nonprofits following a GCO. Finally, managers respond to a GCO by increasing organizational efficiency at service-oriented organizations. Taken together, the evidence suggests that GCOs are informative in the nonprofit sector, and stakeholders’ responses to GCOs depend on stakeholder and organization type.

scholarly journals Does a Manager Respond to a Going-Concern Audit Opinion with an Asymmetry in Gain and Loss?

2021 ◽  
Vol 13 (8) ◽  
pp. 4425
Author(s):  
Taewoo Kim
Keyword(s):  
Time Series ◽  
Accounting Conservatism ◽  
Timely Manner ◽  
Audit Opinion ◽  
Going Concern ◽  
Asymmetric Timeliness ◽  
Gain And Loss ◽  
Audit Opinions ◽  
The Relationship

In this paper, I investigate the relationship between previous going-concern audit opinions and subsequent asymmetric timeliness in accounting. Using the time-series and price-based models and conservatism proxy, I find that firms with going-concern audit opinions subsequently report losses in a more timely manner than firms that did not receive going-concern audit opinions. Furthermore, I also find that firms exiting going-concern audit opinions are more likely to report losses rather than gains in a timely manner, compared to firms non-exiting from going-concern opinions. This study extends the prior research by exploring the association between going-concern opinions and accounting conservatism from the perspective of client firms—that is, how firms behave strategically and conservatively to bypass going-concern opinions, once the firms had received previous going-concern opinions.

scholarly journals Audit Committee’s Role in Moderating the Effect of Financial Distress Towards Going Concern Audit Opinion

2020 ◽  
Vol 11 (4) ◽  
pp. 432
Author(s):  
Anna Kania Widiatami ◽  
Nanny Dewi Tanzil ◽  
Cahya Irawadi ◽  
Ahmad Nurkhin
Keyword(s):  
Financial Distress ◽  
Audit Committee ◽  
Supervisory Board ◽  
Financial Statements ◽  
Audit Opinion ◽  
External Auditors ◽  
Going Concern ◽  
Negative Effect ◽  
Audit Opinions ◽  
Relationship Of

Auditors are required to provide services in auditing financial statements presented by management and provide audit opinions on the fairness of the presentation of financial statements. Sometimes, in reality, management and auditors have their interests so that each party can achieve the goals. The conflict of interest appears on the independence of the auditor in issuing audit opinions, especially the audit opinion with the going concern explanatory paragraph. The audit committee, as a supervisory board, will continue to maintain the independence of the auditor in issuing audit opinions with the going concern explanatory paragraph. This study aims to examine the effectiveness of the audit committee in maintaining the independence of external auditors issuing audit opinions, especially the audit opinion with the going concern explanatory paragraph. Based on the purposive sampling method obtained a sample of 168 companies. Testing the hypothesis in this study using logistic regression and moderated regression analysis. The results showed that financial distress had a significant negative effect for the audit opinion with going concern explanatory paragraph. Furthermore, the audit committee was not able to strenghten the relationship of financial distress on the audit opinion with a going-concern explanatory paragraph.

scholarly journals Drivers of going concern audit opinions: empirical evidence from Indonesia

2017 ◽  
Vol 8 (2) ◽  
pp. 79-90
Author(s):  
Lina Rahmawati Suroto ◽  
Hadri Kusuma
Keyword(s):  
Empirical Evidence ◽  
Audit Opinion ◽  
Going Concern ◽  
Financial Condition ◽  
The Future ◽  
Audit Opinions

Abstract The study of the going concern audit opinions is an important component within the enhancement of firms’ responsibility and stewardship. A going concern audit opinions implies that the independent auditor doubt the future of the firm. This study aimed to examine the drivers of the likelihood of the going-concern audit opinions. Previous studies revealed that there were inconsistent drivers influencing the going-concern audit opinion. This study shows similar results to prior works. The result indicates that firms’ financial condition and profitability significantly affect the likelihood of the going-concern audit opinion, while firms’ size and leverage are not the determinants of the intensity of the going concern audit opinion.

scholarly journals The Effect of Company Size, Company Growth, Financial Conditions, Debt Default And Audit Opinion 2016-2019 on Going Concern Audit Opinions (Empire Study of Trading Companies Listed on The Indonesia Stock Exchange)

2021 ◽  
Vol 04 (11) ◽  
Author(s):  
Charles Ayu Kartika Kinata ◽  
Keyword(s):  
Stock Exchange ◽  
Multiple Logistic Regression Analysis ◽  
Financial Statements ◽  
Company Size ◽  
Audit Opinion ◽  
Going Concern ◽  
Financial Condition ◽  
Debt Default ◽  
Audit Opinions ◽  
Company Growth

The purpose of this study is to see the effect of company size, company growth, financial condition and debt default on going concern audit opinions in 2016-2019 on trading companies listed on the Indonesia Stock Exchange, both partially and simultaneously. Every company has financial statements that aim to provide information regarding the financial position of a company that is useful for a large number of users of financial statements in making economic decisions which are prepared periodically for interested parties. The population in this study has all trading companies listed on the IDX for the 2016-2019 period, which are 47 companies and the sample is 100 units of analysis. The research method applies multiple logistic regression analysis techniques. The results of the study show that the company size variable partially influences the going concern audit opinion on trading sector companies listed on the Indonesia Stock Exchange for the 2016-2019 period. Variables of company growth, financial condition and debt default partially do not affect going concern audit opinion on trading sector companies listed on the Indonesia Stock Exchange for the 2016-2019 period. Variables Company Size, Company Growth, Financial Condition and Debt Default together affect the going concern audit opinion on trading sector companies listed on the Indonesia Stock Exchange for the 2016-2019 period.

scholarly journals Pengaruh Audit Lag, Profitabilitas Dan Likuiditas Terhadap Opini Audit Going Concern Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 1-7
Author(s):  
Putri Cartika Sari
Keyword(s):  
Logistic Regression ◽  
Stock Exchange ◽  
Profit Margin ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Current Ratio ◽  
Audit Opinion ◽  
Going Concern ◽  
Net Profit ◽  
Audit Opinions

Abstract The use of financial statements requires information as a basis for making decisions. Going Concern Audit Opinions are defined as opinions issued by auditors based on the audits they have carried out, in which there are substantial doubts about the company's ability to maintain its survival and to continue its business as a business entity. This study aims to determine and analyze the Effect of Audit Lag, Profitability and Liquidity on Going Concern Audit Opinions on Manufacturing Companies Listed on the Indonesia Stock Exchange in the 2014-2018 Period. The research method is logistic regression analysis. The independent variables in this study are Audit Lag, Return On Assets, Net Profit Margin, Current Ratio and Quick Ratio. While the Dependent Variable is the Going Concern Audit Opinion. The data used are secondary data with a population of manufacturing companies that have been listed on the Indonesia Stock Exchange in 2014-2018. Where a number of samples in this study were 11 companies with 5 years of observation using purposive sampling. From the results of the study it can be concluded that Audit Lag and Quick Ratio has a negative effect on going concern audit opinion. while Return on Assets, Net Profit Margin, Current ratio has no effect on going concern audit opinion. Keywords: Audit Lag; ROA; NPM; CR and QR; Opini Audit Going Concern Abstrak Penggunaan Laporan Keuangan membutuhkan informasi sebagai dasar mereka mengambil keputusan. Opini Audit Going Concern didefinisikan sebagai opini dikeluarkan oleh auditor berdasarkan audit yang telah mereka lakukan, didalamnya menyatakan bahwa terdapat keraguan terhadap kemampuan perusahaan dalam mempertahankan kelangsungan hidupnya dan untuk melanjutkan usahanya sebagai entitas bisnis. Penelitian ini bertujuan untuk mengetahui dan menganalisis Pengaruh Audit Lag, Profitabilitas dan Likuiditas Terhadap Opini Audit Going Concern pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2018. Metode penelitian dalam skripsi ini adalah analisis regresi logistic (logistic regression). Variabel Independen pada penelitian ini adalah Audit Lag, Return On Asset, Net Profit Margin, Current Ratio dan Quick Ratio. Sedangkan Variabel Dependennya adalah Opini Audit Going Concern. Data yang digunakan adalah data sekunder dengan populasi perusahaan manufaktur yang telah terdaftar di Bursa Efek Indonesia tahun 2014-2018. Dimana sejumlah sampel dalam penelitian ini sebanyak 11 perusahaan dengan 5 tahun pengamatan dengan menggunakan pusposive sampling. Dari Hasil penelitian dapat disimpulakan bahwa Audit Lag dan Quick Ratio berpengaruh negatif terhadap opini audit going concern. sedangkan Return on Asset, Net Profit Margin, Current ratio tidak berpengaruh terhadap opini audit going concern. Kata Kunci: Audit Lag; ROA; NPM; CR dan QR; Opini Audit Going Concern

scholarly journals The Effect of Solvability, Company Growth and Income Management on Going Concern Audit Opinions

2020 ◽  
Vol 3 (3) ◽  
pp. 50-57
Author(s):  
Anggi Dini Puspita ◽  
Dodik Juliardi ◽  
Dhika Maha Putri
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Regression Analyses ◽  
Audit Opinion ◽  
Service Company ◽  
Going Concern ◽  
Confirmatory Factor ◽  
Audit Opinions ◽  
Company Growth

This research aims to determine the influence of solvency, growth of the company, and profit management on the going concern audit opinions. The study used the analysis of the confirmatory factor to test the correlation between variables and logistical regression analyses to test the hypothesis. The selected sample in this study is a service company with the transportation sub-sector listed on the Indonesia Stock Exchange (IDX) in 2014-2018 with purposive sampling technique. The results of this study show that (1) solvency affects the going concern audit opinion, (2) The company growth does not affect the going concern audit opinion, (3) Earnings management does not affect the going concern audit opinion.

scholarly journals The Effect of Audit Quality, Previous Year's Audit Opinion, And Company Growth on the Acceptance of Going Concern Audit Opinions

Academia Open ◽  
2021 ◽  
Vol 4 ◽  
Author(s):  
Dewi Anggraeni ◽  
Nurasik
Keyword(s):  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Analysis Method ◽  
Audit Opinion ◽  
Going Concern ◽  
Food And Beverage ◽  
Audit Opinions ◽  
Company Growth

This study aims to analyze the Effect of Audit Quality, Previous Year's Audit Opinion, and Company Growth on the Acceptance of Going Concern Audit Opinions in Food and Beverage Companies Listed on the Indonesia Stock Exchange (IDX) for the 2015-2019 period. The sampling method used is purposive sampling method. The number of companies that were sampled in this study were 10 Food and Beverage companies listed on the IDX in the 2015-2019 period. The data used is secondary data. The data analysis method used in this study is Logistic Regression with SPSS 23. The results of this study indicate that audit quality has an effect on the acceptance of going concern audit opinions. The previous year's audit opinion has an effect on the acceptance of going-concern audit opinion. Company growth has an effect on going concern audit acceptance.

APAKAH OPINION SHOPPING, REPUTASI KAP, AUDIT TENURE DAN KONDISI KEUANGAN MEMPENGARUHI OPINI AUDIT GOING CONCERN?

2021 ◽  
Vol 07 (01) ◽  
Author(s):  
Ribkha Laura ◽  
◽  
Husnah Nur Laela Ermaya ◽  
Edi Warman
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Audit Opinion ◽  
Purposive Sampling ◽  
Going Concern ◽  
Financial Condition ◽  
Financial Conditions ◽  
Opinion Shopping ◽  
Audit Opinions

Abstrak: Penelitian ini dilakukan untuk menguji pengaruh variabel opinion shopping, reputasi KAP, audit tenure dan kondisi keuangan terhadap probabilitas pemberian opini audit going concern pada perusahaan manufaktur di Bursa Efek Indonesia (BEI) periode 2016-2018. Populasi dalam penelitian ini adalah seluruh perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2016-2018 yang dipilih dengan menggunakan metode purposive sampling. Pengujian hipotesis dalam penelitian ini menggunakan Analisis Regresi Logistik. Hasil penelitian ini menunjukkan bahwa opinion shopping, audit tenure dan kondisi keuangan berpengaruh positif signifikan terhadap opini audit going concern sedangkan reputasi KAP tidak berpengaruh terhadap opini audit going concern. Hasil penelitian ini akan memberikan kontribusi bagi peningkatan informasi auditor dalam analisis laporan keuangan dan audit opini. Selain itu, pengguna laporan keuangan juga harus memperhatikan faktor-faktor tersebut dalam menganalisis laporan keuangan untuk menghindari biasnya informasi yang disajikan. Abstract: This study was conducted to examine the effect of opinion shopping variables, KAP reputation, audit tenure and financial condition on the probability of giving going concern audit opinions to manufacturing companies on the Indonesia Stock Exchange (IDX) for the 2016-2018 period. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2018 period which were selected using the purposive sampling method. Hypothesis testing in this study uses Logistics Regression Analysis. The results of this study indicate that opinion shopping, tenure audits and financial conditions have a significant positive effect on going concern audit opinions while KAP reputation has no effect on going concern audit opinions. The results of this study will contribute to the improvement of auditor information in financial statement analysis and audit opinion. In addition, users of financial statements must also pay attention to these factors in analyzing financial statements to avoid bias in the information presented.

scholarly journals Kualitas Audit, Profitabilitas, Leverage Dan Struktur Kepemilikan Terhadap Opini Audit Going Concern

2021 ◽  
Vol 4 (2) ◽  
pp. 270-287
Author(s):  
Ahmad Juanda ◽  
Thomas Fernandez Lamury
Keyword(s):  
Logistic Regression ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Research Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Audit Opinion ◽  
Going Concern ◽  
Audit Opinions

This research is aimed to find empirical evidence of the effect of audit quality, profitability, leverage and ownership structure on going concern audit opinions on manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017 – 2019. The population of this study is 187 listed manufacturing companies. on the Indonesia Stock Exchange in 2017 – 2019. Using purposive sampling, the sample from this study became 100 manufacturing companies with sample criteria: manufacturing companies listed on the Indonesia Stock Exchange in 2017 – 2019 with complete data and no losses during the period study. This research method uses a quantitative approach with data analyzed using logistic regression. The results obtained are that Audit Quality and Leverage partially have a significant effect on Going Concern Audit Opinions in manufacturing companies listed on the Indonesia Stock Exchange in 2017 - 2019. Profitability and Ownership Structure partially have no effect on Going Concern Audit Opinions in listed manufacturing companies. on the Indonesia Stock Exchange in 2017 – 2019. Audit Quality, Profitability, Leverage, Ownership Structure simultaneously affect the Going Concern Audit Opinion in manufacturing companies listed on the Indonesia Stock Exchange in 2017 – 2019.

Do audit opinions reflect earnings persistence?

2015 ◽  
Vol 30 (3) ◽  
pp. 244-276 ◽  
Author(s):  
Thanyaluk Vichitsarawong ◽  
Sompong Pornupatham
Keyword(s):  
Content Analysis ◽  
Earnings Quality ◽  
Decomposition Analysis ◽  
Earnings Persistence ◽  
Content Type ◽  
Audit Opinion ◽  
Going Concern ◽  
Reputation Risk ◽  
Different Types ◽  
Audit Opinions

Purpose – The purpose of this paper is to examine the association between audit opinion and earnings persistence of listed companies in Thailand from 2004 to 2008. Design/methodology/approach – We use archival data and hand collected data in regression analysis. Content analysis was used to perform decomposition analysis of audit modifications. Findings – Firms receiving modified opinions have lower earnings persistence than firms receiving unqualified opinions, and the degree of earnings persistence varies among types of modifications. We find that firms with a qualified opinion or a disclaimer have lower earnings persistence than firms receiving an unqualified opinion with an emphasis of matter (UEM). However, we find no difference in earnings persistence between firms receiving a qualification and a disclaimer. Content analysis reveals that there is information in certain types of modified opinions with respect to earnings quality. Firms receiving a scope limitation qualification and a going concern disclaimer have lower earnings persistence than firms receiving an UEM due to going concern issues. Research limitations/implications – Audit modifications reflect different degrees of problematic issues in clients’ firms, resulting in different impacts on earnings persistence. Thus, policymakers and regulators should emphasize the importance of using auditors’ reports. Strengthened enforcement by regulators makes individual auditors more aware of reputation risk and more likely to express appropriate audit opinions. Originality/value – We examine a broader set of modified audit opinions than those used in prior research. Our study offers the opportunity to examine the association between earnings persistence and different types of modified opinions, especially a disclaimer, which has been rarely found in prior research.

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