Analysis Of The Effect Of Audit Quality, The Previous Year's Audit Opinion, The Company's Growth On The Going Concern Audit Opinion In Mining Companies Listed On The Indonesia Stock Exchange
Introduction
The Going Concern audit opinion is a crucial aspect of financial reporting, as it provides stakeholders with an indication of a company's ability to continue operating in the long term. In the context of mining companies listed on the Indonesia Stock Exchange (IDX), the Going Concern audit opinion is particularly important, given the industry's high-risk nature. This study aims to identify and analyze the factors that influence the acceptance of audit opinion * going concern * in mining companies listed on the IDX during the 2011-2013 period.
Background
The Going Concern audit opinion is a critical component of financial reporting, as it provides stakeholders with an indication of a company's ability to continue operating in the long term. In the context of mining companies, the Going Concern audit opinion is particularly important, given the industry's high-risk nature. The audit quality, previous year's audit opinion, and company growth are potential factors that may influence the acceptance of audit opinion * going concern *. However, the relationship between these factors and the Going Concern audit opinion is not well understood.
Methodology
This study uses a causal research design and replication of previous research to examine the factors that influence the acceptance of audit opinion * going concern * in mining companies listed on the IDX. The population of this study includes 40 mining companies listed on the IDX, and the sampling method used is *purposive sampling *, which produced 11 companies as research objects for 3 years (2011-2013). The independent variables studied include audit quality, previous year's audit opinion, and company growth, while the dependent variable is the acceptance of audit opinion going concern.
Data Analysis
The analysis method used in this study is logistical regression analysis. The results showed that the three independent variables simultaneously had a significant influence on the acceptance of audit opinion going concern. However, partially, audit quality and company growth do not have a significant influence. Audit quality and company growth have a negative coefficient, which means that improving audit quality and company growth does not significantly increase the probability of receiving audit opinion going concern.
Results
The results of this study show that the previous year's audit opinion had a partial significant influence on the acceptance of the opinion * going concern * with a positive coefficient. That is, a company that previously received a Fair Audit Opinion without Exception (WDP) has a higher chance of receiving the opinion * going concern * the following year. This finding suggests that the history of the previous year's audit opinion has a stronger influence on the acceptance of audit opinion * going concern *.
Discussion
The findings of this study have several implications. For mining companies, it is essential to pay attention to audit quality and company growth. However, they must focus more on efforts to maintain good audit opinion in previous years in order to reduce the risk of receiving opinions going concern. For auditors, this study provides a better understanding of the factors that influence the acceptance of opinions going concern. This can help them in conducting risk assessments and provide appropriate audit opinion.
Conclusion
This study aims to identify and analyze the factors that influence the acceptance of audit opinion * going concern * in mining companies listed on the IDX during the 2011-2013 period. The results show that the previous year's audit opinion has a significant influence on the acceptance of audit opinion * going concern *, while audit quality and company growth do not have a significant influence. This study has several implications for mining companies and auditors, and it highlights the importance of maintaining good audit opinion in previous years.
Limitations
This research only focuses on mining companies listed on the IDX for a certain period. These findings may not be generalized to all companies in Indonesia. Further research is needed to examine the factors that influence the opinion * going concern * in various sectors and time periods.
Recommendations
Based on the findings of this study, the following recommendations are made:
- Mining companies should focus on maintaining good audit opinion in previous years to reduce the risk of receiving opinions going concern.
- Auditors should consider the history of the previous year's audit opinion when conducting risk assessments and providing audit opinion.
- Further research is needed to examine the factors that influence the opinion * going concern * in various sectors and time periods.
Future Research Directions
This study provides a foundation for future research on the factors that influence the acceptance of audit opinion * going concern * in various sectors and time periods. Future research should aim to:
- Examine the factors that influence the acceptance of audit opinion * going concern * in different industries.
- Investigate the relationship between audit quality and company growth on the acceptance of audit opinion * going concern *.
- Develop a model that predicts the acceptance of audit opinion * going concern * based on the factors identified in this study.
References
- [List of references cited in the study]
Appendix
- [Appendix materials, such as additional tables and figures, that support the findings of the study]
Q&A: Analysis of Factors Affecting Going Concern Audit Opinion in Mining Companies on the Indonesia Stock Exchange ===========================================================
Q: What is the Going Concern audit opinion, and why is it important for mining companies?
A: The Going Concern audit opinion is a critical component of financial reporting that provides stakeholders with an indication of a company's ability to continue operating in the long term. For mining companies, the Going Concern audit opinion is particularly important, given the industry's high-risk nature. A negative Going Concern audit opinion can have significant consequences for a company's reputation, financial stability, and ability to attract investors.
Q: What are the factors that influence the acceptance of audit opinion * going concern * in mining companies?
A: The factors that influence the acceptance of audit opinion * going concern * in mining companies include audit quality, previous year's audit opinion, and company growth. However, the results of this study show that the previous year's audit opinion has a significant influence on the acceptance of audit opinion * going concern *, while audit quality and company growth do not have a significant influence.
*Q: What is the significance of the previous year's audit opinion in determining the acceptance of audit opinion * going concern ?
A: The previous year's audit opinion has a significant influence on the acceptance of audit opinion * going concern * because it provides an indication of a company's ability to continue operating in the long term. A company that previously received a Fair Audit Opinion without Exception (WDP) has a higher chance of receiving the opinion * going concern * the following year.
Q: What are the implications of this study for mining companies and auditors?
A: The findings of this study have several implications for mining companies and auditors. For mining companies, it is essential to pay attention to audit quality and company growth. However, they must focus more on efforts to maintain good audit opinion in previous years in order to reduce the risk of receiving opinions going concern. For auditors, this study provides a better understanding of the factors that influence the acceptance of opinions going concern. This can help them in conducting risk assessments and provide appropriate audit opinion.
Q: What are the limitations of this study, and what are the recommendations for future research?
A: This research only focuses on mining companies listed on the IDX for a certain period. These findings may not be generalized to all companies in Indonesia. Further research is needed to examine the factors that influence the opinion * going concern * in various sectors and time periods. Based on the findings of this study, the following recommendations are made:
- Mining companies should focus on maintaining good audit opinion in previous years to reduce the risk of receiving opinions going concern.
- Auditors should consider the history of the previous year's audit opinion when conducting risk assessments and providing audit opinion.
- Further research is needed to examine the factors that influence the opinion * going concern * in various sectors and time periods.
Q: What are the future research directions for this study?
A: This study provides a foundation for future research on the factors that influence the acceptance of audit opinion * going concern * in various sectors and time periods. Future research should aim to:
- Examine the factors that influence the acceptance of audit opinion * going concern * in different industries.
- Investigate the relationship between audit quality and company growth on the acceptance of audit opinion * going concern *.
- Develop a model that predicts the acceptance of audit opinion * going concern * based on the factors identified in this study.
Q: What are the practical implications of this study for stakeholders?
A: The findings of this study have practical implications for stakeholders, including investors, creditors, and regulatory bodies. The study highlights the importance of maintaining good audit opinion in previous years to reduce the risk of receiving opinions going concern. This can help stakeholders make informed decisions about investing in or lending to mining companies.
Q: What are the contributions of this study to the existing literature?
A: This study contributes to the existing literature by providing a comprehensive analysis of the factors that influence the acceptance of audit opinion * going concern * in mining companies. The study highlights the importance of considering the history of the previous year's audit opinion when conducting risk assessments and providing audit opinion. This can help auditors and stakeholders make more informed decisions about the financial health of mining companies.