The Influence of Profitability and Company Growth Toward Going Concern Audit Opinion on Property Companies in Indonesia

Setiawan , Santy and Rapina, Rapina and Carolina, Yenni and Kambono, Herman (2022) The Influence of Profitability and Company Growth Toward Going Concern Audit Opinion on Property Companies in Indonesia. In: 2022 8th International Conference on Industrial and Business Engineering, September 27-29, 2022, Macau.

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Abstract

The COVID-19 pandemic that has hit Indonesia since last year has had an impact on the economy and business continuity of companies in Indonesia. Auditors tend to issue a going concern opinion when they doubt the continuity of the company business being audited, especially during the COVID-19 pandemic. According to preliminary studies, a company’s financial condition and growth tend to influence auditors’ opinions. Therefore, this study aims to examine the factors influencing the issuance of going concern opinion by auditors, especially financial factors such as profitability and company growth. Data were collected from the financial statement of manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2020. The test tool used to determine the influence of independent variables on the dependent variable is the logistic regression. The results showed that the company’s profitability influences auditor’s going-concern opinion and company’s growth do not influence auditors’ going-concern opinion. This is because during the pandemic, many property companies hampered in continuing development, thereby reducing the company’s revenues and profits, which had an impact on the company’s hesitation to continue its business. This study is expected to provide information to users of financial statements that the auditor will give a signal to users of financial statements if there are doubts about the viability of the company in the form of giving a going-concern opinion.

Item Type:	Conference or Workshop Item (Paper)
Contributors:	Contribution Contributors NIDN/NIDK Email Author Setiawan, Santy UNSPECIFIED UNSPECIFIED Author Rapina, Rapina UNSPECIFIED UNSPECIFIED Author Carolina, Yenni UNSPECIFIED UNSPECIFIED Author Kambono, Herman UNSPECIFIED UNSPECIFIED
Uncontrolled Keywords:	Profitability, growth, and going concern
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Depositing User:	Perpustakaan Maranatha
Date Deposited:	30 Jan 2024 07:04
Last Modified:	30 Jan 2024 07:04
URI:	http://repository.maranatha.edu/id/eprint/32507

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