Impact of Companies' Financial Condition and Growth toward Acceptance of Going Concern Audit Opinion: Empirical Study at Company Listed in the Jakarta Islamic Index (JII)

Objective - This study aims to explain the companies' financial condition and growth which is affecting going concern audit opinion of the companies listed in the Jakarta Islamic Index (JII). Financial condition is examined through the information changes in working capital to total assets, retained earnings to total assets, earnings before interest and taxes to total assets, book value of equity to book value of total liabilities, sales to total assets. Methodology/Technique - This study applies qualitative research with a description method and the populations used are all companies listed in JII period 2014-2015. Findings - The results of the study explained that the companies' financial conditions affect going concern audit opinion. The worse the financial condition of the company, the greater the probability of companies to receive going concern audit opinion, and vice versa. An auditor will give a going concern audit opinion on companies that are experiencing financial difficulties. The growth of the companies affects going concern audit opinion. If the sales growth is negative, the continuity of the company will be unstable, because the company will be difficult to make profits. It can cause the financial conditions of the company experience difficulties, so that the company will receive going concern audit opinion. Novelty - The study contributes literature with its empirical findings in the context of Indonesia. Type of Paper: Empirical Keywords: Working Capital to Total Assets; Retained Earnings to Total Assets; Earnings Before Interest and Taxes to Total Assets; Book Value of Equity to Book Value of Total Liabilities; Sales to Total Assets and the Company's Growth. JEL Classification: M41, M42.

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The Impact of Bankruptcy Prediction, Company’s Financial Condition, Previous Year Audit Opinion, Firm Size and Audit Tenure Towards Auditor’s Going Concern Opinion

GATR Journal of Accounting and Finance Review (AFR) Vol. 4 (4) Oct-Dec 2019 - GATR Accounting and Finance Review ◽

10.35609/afr.2016.1.1(7) ◽

2016 ◽

Vol 1 (1) ◽

pp. 51-58

Author(s):

Lisa Cellica ◽

Ratnawati Kurnia

Keyword(s):

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Jel Classification ◽

Bankruptcy Prediction ◽

Audit Opinion ◽

Going Concern ◽

Financial Condition ◽

Going Concern Opinion ◽

The Impact

Objective – The auditor is responsible for obtaining sufficient audit evidence about the accuracy and proper use of the going concern assumption from the company’s management through its financial statements. These evidence are used for the purpose of deciding whether there are material uncertainties about the entity's ability to maintain the continuity of its business. Thus, the objective of this paper is to examine the impact of bankruptcy prediction, company’s financial condition, previous year audit opinion, firm size and audit tenure towards Auditor’s going concern opinion. Methodology/Technique – The object of this paper is the service companies listed on the Indonesia Stock Exchange for the period of 2011-2014. This paper uses secondary data and samples taken were determined based on the purposive sampling method. The regression logistic is used to analyse data. Findings – The results of this research show that bankruptcy prediction, company’s financial condition, previous year audit opinion, firm size, and audit tenure all simultaneously, have a significant impact towards Auditor’s going concern opinion, particularly Previous Year Audit Opinion. Novelty – This paper provides insights into the factors affecting auditors in providing a going concern opinion in the case of Indonesian companies. Type of Paper: Empirical Keywords: Bankruptcy Prediction; Company’s Financial Condition; Previous Year Audit Opinion, Firm Size; Audit Tenure; Auditor’s Going Concern Opinion. JEL Classification: D81, M42.

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

JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi) ◽

10.34204/jiafe.v7i1.2928 ◽

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.

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Analysis Of Financial Health Level On Financial Performance In Cement Companies Listed On The Indonesian Stock Exchange (Idx)

Primanomics Jurnal Ekonomi & Bisnis ◽

10.31253/pe.v18i3.401 ◽

2020 ◽

Vol 18 (3) ◽

pp. 125

Author(s):

Dhea Zatira ◽

Ria Puspitasari

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Market Value ◽

Financial Health ◽

Z Score ◽

Working Capital ◽

Book Value ◽

Panel Data Regression ◽

Data Regression ◽

Retained Earnings

This study aims to analyze the Level of Financial Soundness on Financial Performance in Cement Companies that are Go Public Listed on the Indonesia Stock Exchange (BEI). Analysis of the level of financial health using the Altman Z-Score with several ratios, namely the ratio of Working Capital to Total Assets (X1), the ratio of retained earnings to total assets (X2), the ratio of EBIT to Total Assets (X3), the ratio of stock market value to book value ofabilities (X4), the ratio of Sales to Total Assets (X5) to the dependent variable on Financial Performance (Return on Assets). The data analysis technique used in this research is the Altman Z-Score with the criteria for bankruptcy and to find its effect with the panel data regression model assisted by E-Views software. The results of the calculation and analysis of the Z-Score criteria in cement companies in Indonesia, it is known that there is no cement company whose company finances are stated in a healthy condition. One company is prone to bankruptcy (gray zone) while the rest according to the Z-Score criteria are bankrupt. Furthermore, based on the panel data regression examiner simultaneously the five independent variables on financial performance (Y), while partially the working capital ratio to total assets (X1) affects financial performance (Y), the retained earnings ratio to total assets (X2) has no effect on Financial performance (Y), EBIT ratio to total assets (X3) affects financial performance (Y), stock market value ratio to book value of liabilities (X4) has no effect on financial performance (Y), Sales to Total Assets ratio (X5) affect financial performance.

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ANALISIS KEBANGKRUTAN PERUSAHAAN DENGAN MODEL ALTMAN Z-SCORE PADA PERUSAHAAN MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2011-2014

Jurnal PLANS : Penelitian Ilmu Manajemen dan Bisnis ◽

10.24114/plans.v10i2.9623 ◽

2015 ◽

Vol 10 (2) ◽

Author(s):

Rio Evans B.M.S ◽

Cut Ermiati

Keyword(s):

Sampling Technique ◽

Multinomial Logit ◽

Financial Ratios ◽

Variable Ratio ◽

Logit Analysis ◽

Z Score ◽

Book Value ◽

Financial Condition ◽

Total Debt ◽

Retained Earnings

This study examines the analysis of bankruptcy which uses a model Altman Z-Score 1983 once studied the effect of variable ratio of Working Capital to Total Assets (X1), Retained Earnings to Total Assets (X2), Earnings Before Interest and Tax to Total Assets (X3), Book Value of Equity to Book Value of Total Debt (X4), and Sales to Total Assets (X5) against bankruptcy for companies that went bankrupt or for companies that are not bankrupt by the number of samples (purposive sampling as a sampling technique ) as many as 15 companies. The purpose of this study is to analyze the financial ratios Altman model to explain the company's financial condition foods and beverages as a first step in anticipation of bankruptcy. The analysis method in this research is to perform calculations using the Altman Z-Score Revised (1983) and multinomial logit analysis. Testing is done with the first models prerequisite analysis, testing normality with the overall result is a variable based test One Sample Kolmogorov-Smirnov test indicated that the model in an abnormal position with evidence of significant data α > 0.05. Second, the test results with the results multikolinieritas with VIF < 10 and the tolerance level of > 0.1 indicates that our model is free from the problems of multicollinearity. This is consistent with the assumption multinomial logit analysis that does not require the classical assumption that multinomial logit analysis can proceed. The results of this study are the calculations that have been done, that there are 10 companies in the category of Grey Area and 5 companies in the category is not bankrupt. Seen as a whole has a classification of 95%, while the remaining 5% indicates that bankruptcy is explained by other variables other than those examined in this study In this study the variable ratio of Book Value of Equity to Book Value of Total Debt and Sales to Total Assets have influence significantly to the bankruptcy analysis. So that this research model is Z-Score = Ln (P1/P0) = -149.589 + 117,603BVEBVD + 33,029STA and Z-Score = Ln (P2/P0) = -117.301 + 111,623BVEBVD + 21,657STA Keywords: Bankruptcy, Multinomial Logit Analysis, Financial Ratios Altman Z-Score Model Of Revision.

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Pengaruh Leverage, Opini Audit Tahun Sebelumnya, Pertumbuhan Perusahaan, dan Ukuran Perusahaan terhadap Opini Audit Going Concern

Owner ◽

10.33395/owner.v5i1.348 ◽

2021 ◽

Vol 5 (1) ◽

pp. 164-173

Author(s):

Kusuma Indawati Halim

Keyword(s):

Stock Exchange ◽

Company Size ◽

Manufacturing Companies ◽

Audit Opinion ◽

Going Concern ◽

Additional Information ◽

Financial Condition ◽

Going Concern Opinion ◽

Audit Reports ◽

Company Growth

Audit reports are used by auditors to inform the accuracy of the information in the financial statements. The auditor as an independent party has the competence to provide an opinion on the client's financial condition. If it is estimated that the company cannot continue its activities, it is likely that it will get a going concern audit opinion. Audit opinion can help investors and other stakeholders in assessing the status of the company's business continuity. The important thing from a going concern audit opinion is to provide additional information for investors in making investment decisions. This study analyzes the factors that determine going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange. The factors tested in this study are leverage, initial opinion, company growth and company size. The study used a sample of 125 companies for the 2014-2018 period. The results of data analysis were obtained from logistic regression tests. The empirical results show that prior opinion and leverage increase the likelihood of receiving a going concern opinion. Meanwhile, company growth and company size have no effect on going concern audit opinion. Nagelkerke's R Square test shows the ability of the factors in this study to explain 63.1% of going-concern audit opinion, while 36.9% is explained by other factors outside the research model. The findings from this study are expected to help investors and other stakeholders to prevent losses if they invest in companies that have the potential to go bankrupt.

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PENGARUH PROFITABILITAS, LIKUIDITAS, UKURAN PERUSAHAAN DAN PERTUMBUHAN PERUSAHAAN TERHADAP OPINI AUDIT GOING CONCERN (STUDI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN (2014-2017)

Media Mahardhika ◽

10.29062/mahardika.v19i2.262 ◽

2021 ◽

Vol 19 (2) ◽

pp. 380-394

Author(s):

Bayu Nurcahyo Andini ◽

Soebandi Soebandi ◽

Yantik Peristiwaningsih

Keyword(s):

Stock Exchange ◽

Company Size ◽

Manufacturing Companies ◽

Audit Opinion ◽

Research Results ◽

Going Concern ◽

Financial Condition ◽

The Right ◽

Company Growth ◽

Observation Period

Purpose - The purpose of this research was to determine the effect of profitability, liquidity, company size and company growth on Going Concern Audit Opinions. Research on going concern audit opinion on companies listed on the Indonesia Stock Exchange has been widely conducted, but there are still many differences in research results such as research from Setiawan and Suryono (2015) which proves that liquidity can have an influence on going concern audit opinion, in contrast to Melania research et all (2016) prove that liquidity has no significant effect on going concern audit opinion. Design / Methodology / Approach - This type of research uses Quantitative, the sample in this study uses objects in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2014-2017 with a company sample of 126 and an observation period of 4 years so that the total number of samples in this study as many as 504. Findings - The results show that profitability influences going concern audit opinion, liquidity affects going concern audit opinion, company size influences going concern audit opinion, company growth does not affect going concern audit opinion and Simultaneously profitability, liquidity, company size and growth the company influences the going concern audit opinion. Research Limits - The scope covers information about profitability, liquidity, company size, company growth, and going concern audit opinion. And use manufacturing companies listed on the Indonesia Stock Exchange in 2014-2017. Implications - Investors and prospective investors in investing should pay attention to the company's financial condition, especially related to business continuity in order to make the right investment decisions. Originality / Value - Research on going concern audit opinion on companies listed on the Indonesia Stock Exchange has been widely conducted, but there are still many differences in research results. Diverse research results may be due to differences in the nature of the independent variables and the dependent variable under study or differences in the observation period

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PENGARUH KONDISI KEUANGAN, DEBT DEFAULT, UKURAN PERUSAHAAN, DAN PERTUMBUHAN PERUSAHAAN TERHADAP PENERIMAAN OPINI AUDIT GOING CONCERN

SIMAK ◽

10.35129/simak.v19i01.177 ◽

2021 ◽

Vol 19 (01) ◽

pp. 126-140

Author(s):

Wahyu Delta Setyanida ◽

Ceacilia Srimindarti

Keyword(s):

Stock Exchange ◽

Population Sample ◽

Manufacturing Companies ◽

Audit Opinion ◽

Purposive Sampling ◽

Going Concern ◽

Financial Condition ◽

Debt Default ◽

Sample Method

This research aims to examinethe effect of. financial. condition, debt. default, size, and.Growth on going. concern. audit. opinion. All. manufacturing. companies. listed.onthe. Indonesia. Stock. Exchange. from. 2017. to. 2019 are. used. in. this. study. as.a population. Sample method used in this research is purposive sampling. The. samples. obtained. in. this. study. were. 215 samples. from. 494 manufacturing. companies. The method of analysis used in this research is logistic. regression.Analysis.The result of this research found that. financial. condition, debt. default, size, and growth. does. not. have. a significant.Impacton. going. concern. audit. opinion.The results of this study have implications for the company in order to avoid going concern audit opinion.

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PREDICTING THE POTENTIAL BANKRUPTCY OF COAL MINING COMPANIES USING ALTMAN Z-SCORE METHOD DURING 2012-2016 PERIOD

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2020.8160 ◽

2020 ◽

Vol 8 (1) ◽

pp. 491-500

Author(s):

Rihfenti Ernayani

Keyword(s):

Coal Mining ◽

Stock Exchange ◽

Study Data ◽

Z Score ◽

Working Capital ◽

Book Value ◽

Mining Companies ◽

Grey Area ◽

Score Method ◽

Retained Earnings

Purpose of the study: This study aimed to determine and predict potential bankruptcy in coal mining companies listed in Indonesia Stock Exchange (IDX) period 2012-2016. Methodology: This study to using the Altman Z-Score method, with five (5) ratios, namely Working Capital to Total Asset, Retained Earnings to Total Assets, Earning before interest and tax to total assets, Market Value of Equity to Book Value of Debt, and Sales to Total Assets. The ratio of working capital to total assets (X1) is a ratio of liquidity which measures the extent of working capital that is used to finance the total assets. Main Findings: The result showed, by the Z-Score value in 2016 from the coal mining companies studied, four companies fall in the category of potential bankruptcy, three companies in the grey area, and four in the healthy category. Applications of this study: Data sources in this study were coal mining companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-2016. Novelty/Originality of this study: There are 11 coal mining companies taken as sample based on purposive sampling. The result shows, by the Z-Score value in 2016 from the coal mining companies studied, four companies fall in the category of potential bankruptcy, three companies in the grey area, and four in the healthy category.

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PENGARUH PERTUMBUHAN PERUSAHAAN, KONDISI KEUANGAN PERUSAHAAN, DAN OPINI AUDIT TAHUN SEBELUMNYA TERHADAP OPINI AUDIT GOING CONCERN

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v6i1.5081 ◽

2017 ◽

Vol 6 (1) ◽

Author(s):

Danang Anugrah Putra ◽

Ach. Syaiful Hidayat Anwar ◽

Thoufan Nur

Keyword(s):

Data Analysis ◽

Sampling Method ◽

Stock Exchange ◽

The Other ◽

Audit Opinion ◽

Purposive Sampling ◽

Going Concern ◽

Mining Companies ◽

Financial Condition ◽

Other Hand

This research is aimed to examine the effect of the company’s growth, financial condition and theprior year audit opinion on going concern audit opinion in mining companies listed on IndonesiaStock Exchange (IDX). This research is associativeresearch that the population of this researchis mining companies listed on Indonesia Stock Exchange (IDX) during period 2011-2015. Thesample is determined by purposive sampling method and the technique of data analysis islogistic regression. The results of this research are company’s growth and the prior year auditopinion has no effect on going concern audit opinion. On the other hand, financial condition haseffect on going concern audit opinion.Keywords:Audit Opinion, Financial Condition, Going Concern, The Company’s Growth

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Pengaruh Kualitas Auditor, Kondisi Keuangan, Kepemilikan Perusahaan, Disclosure, Pertumbuhan Perusahaanm dan Debt Default terhadap Penerimaan Opini Audit Going Concern

Jurnal ULTIMA Accounting ◽

10.31937/akuntansi.v8i2.583 ◽

2016 ◽

Vol 8 (2) ◽

pp. 89-110

Author(s):

Elia Hinarno ◽

Maria Stefani Osesoga

Keyword(s):

Annual Report ◽

Stock Exchange ◽

Financial Statements ◽

Research Use ◽

Audit Opinion ◽

Nominal Scale ◽

Going Concern ◽

Financial Condition ◽

Debt Default ◽

External Auditor

The objective of this study was to obtain empirical evidence about the effect of auditor’s quality, financial condition, company’s ownership, disclosure, company’s growth, and debt default on the acceptance of going concern audit opinion. The object of this study is the manufacture companies listed in Indonesia Stock Exchange in 2011 -2014. Samples of this research were taken by using purposive sampling as many as 8 manufactures company. Criteria taken among companies that publish annual report with financial statements audited by an external auditor in the year 2011 – 2014, financial statements period is begin on 1 January and ended on 31 December, using rupiah as a currency, and have a net loss at least 2 periods in a row. This research use regression logistic, because the dependent variable measured by nominal scale. In testing the simultaneous significant auditor’s quality, financial condition, institutional’s ownership, managerial’s ownership, disclosure, company’s growth, and debt default have significant effect towards going concern audit opinion. In T test, in partial, the independent variabel auditor’s quality, financial condition, institutional’s ownership, managerial’s ownership, disclosure, company’s growth, and debt default, does not have a significant effect on the auditor in the provision of going concern audit opinion. Keywords: Auditor’s Quality, Company’s Growth, Debt Default, Disclosure, Financial Condition, Going Concern, Institutional’s Ownership, Managerial’s Ownership.

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