The results of statistical testing proved that profitability does not have a significant impact on the adoption of an audit opinion on a going concern. Liquidity does not have a significant impact on the adoption of an audit opinion on a going concern.
INTRODUCTION INTRODUCTION
- Research Background
- Identification of Problem
- Scope of Problem
- Statement of Problem
- Research Objective
- Research Benefit
- Theoritical Aspects
- Systematic Writing
Audit Opinion Going Concern is the opinion given by the auditor to determine whether the company can maintain its viability (SA Sections 341, 2011). According to Venuti (2007), the audit report's going concern would undermine confidence in the company's shareholders and creditors.
INTRODUCTION
For the author, this research adds the author's knowledge and the author's analytical ability about the influence of profitability, liquidity and the company's growth to the effort to initiate the audit conclusion. For accounting students, the result of this research is expected to be a source of information for students majoring in accounting to conduct future research.
RESEARCH METHOD
This chapter described the underlying material of this writing, such as the theory and previous research supporting the research to be conducted, the conceptual framework, and the hypotheses advanced in this study.
RESULTS AND DISCUSSION
CLOSING
LITERATURE REVIEW AND HYPOTHESIS
Audit Opinion
- Agency Theory
- Definition Of Audit Opinion
- Unqualified Opinion
- Unqualified Opinion with Explanatory Language
- Qualified Opinion
- Adverse Opinion
- Disclaimer of Opinion
With an unqualified conclusion, the auditor stated that the financial statements present fairly, in all material respects, in accordance with generally accepted accounting principles in Indonesia. There is no situation that requires the auditor to add an explanatory paragraph or change the wording of the audit report.
Audit Opinion Going Concern
- Negative Trend
- Another indication of the possibility of financial distress
- Internal Problems
- The problems that have occurred outside
When doubts actually exist about the survival of the business, the auditor should consider issuing a going concern audit opinion. 28 can be interpreted as the company's ability to continue in the long term".
Profitability
Profitability is the company's ability to earn a profit relative to its sales, total assets, or equity (Sartono, 1998). Return on assets analysis in financial analysis is of great importance as one of the holistic/comprehensive techniques of financial analysis. Return on assets is a form of the profitability ratios that aim to measure the overall ability of the company with funds invested in assets used for the operation of the company to generate profits.
The analysis of the company's financial indicators can basically be done with two methods of comparison, namely (Abdul Halim.
Liquidity
The short-term ratio is the company's ability to meet short-term obligations with the company's other short-term assets. The higher the current ratio, the greater the company's ability to meet short-term financial obligations. The greater the ratio of current assets to current liabilities, the greater the company's ability to cover short-term liabilities.
The higher the liquidity, the higher the company's ability to pay its short-term debt (Prastya, 2010).
Company’s Growth
Research Setyarno (2006) tests how the financial ratios of the auditee (liquidity ratios, profitability ratios, activity ratios, leverage ratios and the turnover growth ratio), the size of the auditee, the size of the auditor and the audit opinion of the previous year affect the going concern statement . His research concluded that the liquidity ratio and the significant auditor's report of the previous year have a significant influence on the going concern statement. Research conducted by Alexander Ramadhany (2004) using the first non-financial variable: the auditor's report of the previous year and the five.
While the non-financial variable that the audit opinion of the previous year cannot show a significant effect on the audit opinion of the continuity.
RESEARCH METHODOLOGY
Type of Research
Operational Variable
Population and Sample
- Population
- Samples
The population can also be defined as the totality of all possible values, the results of counting or quantitative measurement of the specific characteristics of all members of the full set and of course we want to learn nature (Sudjana, 2002: 6). The population of this research is consumer goods industry sector manufacturing company listed on the consumer goods industry sector Indonesia Stock Exchange (BEI) in the year 2011-2013 which consists of 37 companies. Samples were consumer goods industry sector manufacturing company listed on the Indonesia Stock Exchange (IDX), engaged in manufacturing in 2011-2013 were selected by purposive sampling method.
In purposive sampling, the selection of groups of subjects based on characteristics or properties that are believed to have a close relationship with the characteristics or nature of the population that are previously known.
Data Collection
- Types of Data
- Data source
- Data Collection Method
- Method of collecting data
- Analysis method Descriptive statistics
Collection processes the data of this study, data was collected using the method of documentation. With the method of documentation, researchers examined written objects such as books, magazines, documents, regulations, meeting minutes, diaries and so on. With this method of documentation, balance sheet and profit/loss data were collected to calculate the value of Z-score and sales growth ratio.
The analysis method used in the study is multiple regression analysis to see the effect of company size, profitability and liquidity as well as the auditor's opinion on the provision previously included in the going concern statement.
Data Analysis Techniques
- Panel Data Approach
- Fixed Effect Model
- Random Effect Model
- The Selection of Model Estimation
- Lagrance Multiplier Test
- Haussman Test
- Classical Assumption Test a) Normality Regression Test
On random effects model, each component of error is uncorrelated with each other and there is no autocorrelation between cross section and time series. Autocorrelation test was intended to test if there is a correlation between error in period t with error in period t-1 (before) in linear regression model. If the value of DW is lower than the lower limit or lower limit (dl), the autocorrelation coefficient is greater than zero, it means that there is positive autocorrelation.
If the value is greater than DW (4 - dl), the autocorrelation coefficient is less than zero, indicating that there is negative autocorrelation.
Hypothesis Test
- Multiple Linear Regression
- Partial Effect Test (T Test)
- Simultaneous Significance Test (F Statistical Test)
- Determinant Coefficient Test (R 2 )
F statistic test shows whether all the independent variables simultaneously influence the dependent variable or dependent. F table (ANOVA table) or significant value ≤ 0.05 then Ha can be accepted, this means that all independent variables simultaneously have a significant influence on the dependent variable. F table (ANOVA table) or significant value ≥ 0.05 then Ha cannot be accepted, it means that independent variables simultaneously have no significant influence on the dependent variable.
While the value of R2 or close to 1 means independent variables provide almost all the information needed to predict the variation of the dependent variable.
ANALYSIS AND DISCUSSION
General Description of Statistics
Sampling Location
Population of Research
Sample of Research
18 TCID Mandom Indonesia Tbk 19 TSPC Tempo Scan Pacific Tbk 20 ULTJ Ultra Jaya Milk Tbk 21 UNVR Unilever Indonesia Tbk.
Description of Data Sample
- Audit Opinion Going Concern
- Pooled Least Square
- Fixed Effect Model
- Random Effect Model
74 Using the common effect model approach, it can be seen that the results of R2 are 0.981366, which means that 98.13% of the going concern variable of the audit opinion can be explained by three independent variables, i.e. by using making a fixed effects model approach, it can be explained We can see that the results of R2 are 0.995145, which means that 99.51% of the continuity variable of the audit opinion can be explained by three independent variables, i.e. 77 By using making the random effects modeling approach, it can be seen that the results of R2 are 0.955952. this means that the 95.59% of the continuity variable of the auditor's report can be explained by three independent variables, namely profitability (ROA), liquidity (CR) and company growth (NS).
Then the regression model can be used to predict the audit report delay or it can be said that the variable ROA, CR and NS act simultaneously to ARL.
Selection Test of Panel Data Regression Model
- Haussman Test
- Lagrance Multiplier Test
Thus, accepting H1 means that it is better to use a fixed-effect model than a normal-effect model. Thus, we can conclude that it is better to use a fixed effect model than a random effect model. Based on the results of the Lagrange multiplier test above, the value of Breusch-Pagan's 0.0000 is less than 0.05, so H0 is not accepted, which means that the random effect model is better than the pooled least squares/total effect model.
Then it can be concluded that the processing of data in this research is through the use of the random effect model.
Analysis of Panel Estimation Result Table 4.14 Table 4.14
Based on the election results of the best panel data regression model, it is shown that the random effect model is the best used in this research compared to the pooled least squares/total effect model and the fixed effect model.
Descriptive Statistic Test
Classical Assumption Test
- Normality Regression Test
- Multicollinearity Test
- Heteroscedasticity Test
- Autocorrelation Test
According to Priyanto the multicollinearity test is used to test if there is correlation between the independent variables in the regression model. From the multicollinearity test result table above, it can be seen that the value of the correlation coefficient between the independent variables is below 0.9, therefore, it was concluded that there is no multicollinearity problem in this data. 90 Based on the result of the White test, it can be seen that the Obs*R-squared value of 0.538468 > 0.05 means that the regression model has no heteroscedasticity problem.
Autocorrelation test intended to test whether there is correlation between errors in period t with period t-1 (rather in a linear) in regression model.
Hypothesis Test
- Multiple Linear Regression Test
- Partial Hypothesis Test (T-Test)
- Simultaneous Significance Test (F-Test)
- Interpretation Result
The probability value of ROA is 0.8771 > 0.05 which means that profitability (X1) insignificantly affects audit report delay (Y). The probability value of AO is 0.0030 < 0.05 which means that audit opinion (X2) significantly affects audit report delay (Y). Based on the above result, then H2 is accepted and H0 is rejected, it means audit opinion (X2) significantly affects audit report delay (Y) partially.
The probability value of AGE is 0.0356 > 0.05, which means that the age of the company (X3) has a significant influence on the audit report delay (Y).
CONCLUSION, LIMITATION AND RECOMMENDATION
Conclusion
In this study, there are some limitations that may affect the results of the study. In the study, only three years i.e. 2011-2013 were used to see the effect of profitability, liquidity and growth of the company on the audit opinion of the ongoing business in the consumer goods industry sector. The sample used in this study is exclusively a manufacturing company from the consumer goods industry sector that is listed on the Indonesian stock exchange and meets the set criteria, so the sample included 21 companies.
While there are many more variables that can be used to see its effect on the audit opinion going concern on consumer goods industry manufacturing business.
Recommendation
The period of this study is limited to three years, namely 2011 to 2013, then for further research, the study period of more than 3 years can be used. The samples in this study are limited to companies engaged in the consumer goods manufacturing industry. So for further research they can use the sample of companies engaged in other sectors, e.g. the financial sector such as banks, financial institutions, insurance and others.
BIBLIOGRAPHY
Noverio, R., 2011, the Auditor Quality Impact Analysis, Liquidity, Profitability and Solvency against the going concern Audit Opinion Manufacturing Companies Listed in Indonesia Stock Exchange, Thesis, Department of Accounting, Semarang: Diponegoro University. Rahayu, P., 2007, Assessment of going concern opinion: a study based on financial and non-financial information (Indonesian Banking Empirical evidence from listed firms on JSX and SSX), Accounting X National Symposium, July: 1-32. Ramadhany, A., 2004, Analysis of Factors Affecting Acceptance of Going Concern Opinion on Manufacturing Companies Experiencing Financial Distress in the Jakarta Stock Exchange, Thesis, Semarang: Diponegoro University.
B., 2009, Audit Opinion in Continuity: A Research-Based Prediction Model for Bankruptcy, Company Growth, Leverage, and Auditor Reputation, Journal of Accounting and Business, Vol.
ATTACHMENTS
CURRICULUM VITAE
CHI-SQUARE TABLE
TABLE
Advisor Appointment Letter
Mini-Thesis Guidance Card
