The Influence Of Company Size, Financial Distress, KAP Reputation On Going Concern Audit Opinion Of Manufacturing Companies From BEI

I Made Wianto  Putra; Putu Gede Wisnu Permana  KAWISANA

doi:10.38142/ijesss.v1i2.29

Authors

I Made Wianto Putra University of Warmadewa, Indonesia
Putu Gede Wisnu Permana KAWISANA University of Warmadewa, Indonesia

DOI:

https://doi.org/10.38142/ijesss.v1i2.29

Abstract

The company's financial condition can show that the company can last for a certain amount of time. Going concern audit opinion is defined as an opinion issued by the auditor based on an audit that has been conducted, in which there are doubts about the ability of a business in maintaining its continuity of life to continue its business as a business entity in the future. The purpose of this study is to empirically examine the Effect of Company Size, Financial Distress, and KAP Reputation on Going Concern Audit Opinions on Manufacturing Companies on the Indonesia Stock Exchange (BEI) in 2016-2018. Where the number of samples of this study was 31 companies with 3 years of observation with purposive sampling. Data collection was carried out in this study with the study of documentation through the company's annual financial report or annual report obtained from the website www.idx.co.id. The method in this research is logistic regression analysis. From the results of the study, it can be concluded that Company Size and Financial Distress have a negative effect on ongoing concern audit opinion and Public Accounting Firms' reputation has a not significant positive effect on ongoing concern audit opinion.

Downloads

Download data is not yet available.

References

rdiyanti, A., & Supriadi, Y. N. (2018). Efektivitas Pengendalian Internal, Dan Kompetensi Sumber Daya Manusia, Terhadap Implementasi Good Governance Serta Impikasinya Pada Pencegahan Fraud Dalam Pengelolaan Keuangan Desa Di Kabupaten Tangerang. Jurnal Manajemen Bisnis, 8(1), 1–15.

Busso, M., Dinkelman, T., Claudia Martínez, A., & Romero, D. (2017). The effects of financial aid and returns information in selective and less selective schools: Experimental evidence from Chile. Labour Economics, 45(November 2016), 79–91. https://doi.org/10.1016/j.labeco.2016.11.001

Heliodoro, P. A., Carreira, F. A., & Lopes, M. M. (2016). The change of auditor: The Portuguese case. Revista de Contabilidad-Spanish Accounting Review, 19(2), 181–186. https://doi.org/10.1016/j.rcsar.2015.05.001

Iatridis, G. E. (2018). Accounting discretion and executive cash compensation: An empirical investigation of corporate governance, credit ratings and firm value. Journal of International Financial Markets, Institutions and Money, 55, 29–49. https://doi.org/10.1016/j.intfin.2018.02.008

Irianto, G., Novianti, N., & Wulandari, P. P. (2014). “Kamuflase” dalam Praktik Rotasi Auditor. Jurnal Akuntansi Multiparadigma, 5(3), 393–408. https://doi.org/10.18202/jamal.2014.12.5029

Jennings, D. F., & Seaman, S. L. (1990). Aggressiveness of response to new business opportunities following deregulation: An empirical study of established financial firms. Journal of Business Venturing, 5(3), 177–189. https://doi.org/10.1016/0883-9026(90)90031-N

Jensen, M. C., & Smith, Jr., C. W. (2005). Stockholder, Manager, and Creditor Interests: Applications of Agency Theory. SSRN Electronic Journal, (December 2000). https://doi.org/10.2139/ssrn.173461

Lu, T., & Sapra, H. (2019). Agency Conflicts, Bank Capital Regulation, and Marking to Market. The Accounting Review. https://doi.org/10.2308/accr-50982

Mantzari, E., & Georgiou, O. (2019). Ideological hegemony and consent to IFRS: Insights from practitioners in Greece. Critical Perspectives on Accounting, 59, 70–93. https://doi.org/10.1016/j.cpa.2018.06.003

Mironiuc, M., & Robu, I.-B. (2012). Empirical Study on the Analysis of the Influence of the Audit Fees and Non Audit Fees Ratio to the Fraud Risk. Procedia - Social and Behavioral Sciences, 62, 179–183. https://doi.org/10.1016/j.sbspro.2012.09.028

Murti, A. K., Trisnadewi, A. A. E., Citraresmi, L. D., & Saputra, K. A. K. (2018). SAK ETAP, Kualitas Laporan Keuangan dan Jumlah Kredit yang diterima UMKM. Ekuitas: Jurnal Pendidikan Ekonomi, 6(2), 52–61. https://doi.org/10.23887/ekuitas.v6i2.16300

Najib, H., & Rini. (2016). Analisis Faktor Yang Mempengaruhi Pembelian Spontan. Simposium Nasional Akuntansi XIX, 19, 55–73.

Naukoko, P. A. (2014). Akuntansi Sumber Daya Manusia. Going Concern?: Jurnal Riset Akuntansi, 9(3), 43–51. https://doi.org/10.32400/gc.9.3.6123.2014

Paino, H., Razali, F. M., & Jabar, F. A. (2015). The Influence of External Auditor’s Working Style, Communication Barriers and Enterprise Risk Management toward Reliance on Internal Auditor’s Work. Procedia Economics and Finance, 28(April), 151–155. https://doi.org/10.1016/s2212-5671(15)01094-1

Saputra, K. A. K., Jayawarsa, A. A. K., & Atmadja, A. T. (2019). Resurrection as a fading implication of accountability in financial management for village credit institution. International Journal of Business, Economics and Law, 19(5), 258–268.

Saputra, K. A. K., Subroto, B., Rahman, A. F., & Saraswati, E. (2020). Issues of morality and whistleblowing in short prevention accounting. International Journal of Innovation, Creativity and Change, 12(3), 77–88.

Saputra, K. A. K., Trisnadewi, A. A. A. E., Anggiriawan, P. B., & Kawisana, P. G. W. P. (2019). Kebangkrutan Lembaga Perkreditan Desa (Lpd) Berdasarkan Analisis Berbagai Faktor. Jurnal Ilmiah Akuntansi, 4(1), 1–23. https://doi.org/10.23887/jia.v4i1.17250

Sarwoko, I., & Agoes, S. (2014). An Empirical Analysis of Auditor’s Industry Specialization, Auditor’s Independence and Audit Procedures on Audit Quality: Evidence from Indonesia. Procedia - Social and Behavioral Sciences, 164(August), 271–281. https://doi.org/10.1016/j.sbspro.2014.11.077

Ugwunta, D. O., & Ugwuanyi, B. U. (2019). Accounting conservatism and performance of Nigerian consumer goods firms’: An examination of the role of accruals. International Journal of Financial Research, 10(1), 1–9. https://doi.org/10.5430/ijfr.v10n1p1

Utami, M., & Silvia Sutejo, B. (2012). The importance of corporate governance in Public Sector. Global Business and Economics Research Journal, 1(1), 25–31. https://doi.org/10.2991/insyma-18.2018.24

Wang, H. Da, Lin, C. H., & Cho, C. C. (2018). The dark and bright sides of agency problems: Evidence from insider compensation of family pyramidal firms. Asia Pacific Management Review. https://doi.org/10.1016/j.apmrv.2018.09.001

Xu, M., Qin, X., Dust, S. B., & DiRenzo, M. S. (2019). Supervisor-subordinate proactive personality congruence and psychological safety: A signaling theory approach to employee voice behavior. Leadership Quarterly, 30(4), 440–453. https://doi.org/10.1016/j.leaqua.2019.03.001

Yang, S., Liu, Y., & Mai, Q. (2018). Is the quality of female auditors really better? Evidence based on the Chinese A-share market. China Journal of Accounting Research, 11(4), 325–350. https://doi.org/10.1016/j.cjar.2018.07.004

Yolles, M. (2019). The complexity continuum, part 2: modelling harmony. Kybernetes, 48(8), 1626–1652. https://doi.org/10.1108/K-06-2018-0338

Yudha, C. K., & Saputra, K. A. K. (2019). Pengaruh Opini Going Concern, Pergantian Manajemen, Kesulitan Keuangan, Dan Reputasi Auditor Pada Auditor Switching. JAD: Jurnal Riset Akuntansi Dan Keuangan Dewantara, 2(2), 82–95. https://doi.org/10.7868/s0869565217060263

Zhang, Y., Zhou, J., & Zhou, N. (2007). Audit committee quality, auditor independence, and internal control weaknesses. Journal of Accounting and Public Policy, 26(3), 300–327. https://doi.org/10.1016/j.jaccpubpol.2007.03.001