GOING CONCERN AUDIT OPINION FROM AN AGENCY THEORY PERSPECTIVE

Abstract

A going concern audit opinion is bad news for clients or companies that use financial reports. One of the problems that often arises is that auditors find it difficult to estimate the viability of an entity, and this results in many auditors facing several problems, both in the form of ethics and morals, in providing concerned opinions. Audit failures or errors when providing opinions often occur because auditors experience difficulties when deciding on going concern opinions resulting in an impact on the survival of an entity. The purpose of this research is to measure how much the variables studied influence the Going Concern Audit Opinion. The entity's annual financial report available on the IDX for 2018-2020 is used by researchers as secondary research data. Then the Purposive Sampling method was used and 13 companies were obtained that met the standards or requirements in the research with a total of 39 sample observations. The results of the research prove that the Audit Tenure variable has a significant negative influence, while the Cap Reputation and Audit Opinion variables have a significant positive influence on the Going Concern Audit Opinion.