Detail Cantuman

In a standard audit it is suggested that the audit report should state whether the financial statements have been prepared according to financial accounting standard in Indonesia, and to check the degree of conformity in the audit so, the auditor should be able to obtain and consider the management plans for survival during a reasonable period of time. This research aimed to analyze the effects of the debt default, the financial difficulties, the reputation of the auditor, the previous year audit opinion, the size of the company, the shift of the auditor, and the size of audit committee on the going concern opinion.

The research samples comprised 222 company’s financial difficulties, and 201 companies with the comprehensive losses observed for three year period, from 2012 through 2014. The samples were chosen using the purposive sampling technique. The research data were the secondary data ini the from of the reports of the auditor and the financial reports. The data were then analyzed using the logistic regression analysis.

The research results revealed that the debt default, the financial difficulties, the previous year audit opinion, and the size of the company had an effect on the administration of the going concern, while the reputation of the auditor, the shift of the auditor, and the size of the audit committee had no effect on the administration of the going concern opinion.