Review Journal "The Influence of Previous Audit Opinion Going Concern, Audit Quality and Company’s Factor to Audit Opinion Going Concern"

Title	The Influence of Previous Audit Opinion Going Concern, Audit Quality and Company’s Factor to Audit Opinion Going Concern
Author	Dwi Cahyono
Year	2007

Introduction

Economic crisiss which has happened in Indonesia since 1998 has given a huge bad financial crisiss. As the effect of it, many companies went bancrupt,many banks collapsed and many employees got unemployed. Based on BPS (Badan Pusat Statistik) some sectors had positively growth, there are : agriculture, gas sector, electricity, water supply sectors,vehicles and communication sectors. Meanwhile manufacturing sectors got the worst effect of this crisiss. Audit opinion going concern (GCAO) is an estimation in company’s financial report so that when one company is get the contrass condition with its continuity, the company can be estimated to have a problem. Audit report which modify with going concern is an indication that in auditor opinion there is a risk that the company cannot survive in their bisnis.

Problem to Discuss

Problem to discuss in this thesis is “ Is audit opinion at the previous year, audit quality, company financial condition, company’s growth and debt default affected to audit opinion going concern.

RESEARCH METHOD

Population

This reseacrh object is a whole go publik company listed in Indonesia Stock Exchange (IDX) in manufacture line in 2007-2009. This research sample is taken using this criteria namely : (1) Whole manufactur company listed in IDX in 2007 until 2009. (2) That companies arenot delistingfrom IDX in period 2007-2009. (3) Publish financial statement that has been audit by independent audito per 31 Desember from 2007 to 2009. (4) Having negative earning after taxes at least one financial statement report period in reseaarch period

Data Analysis Tecnique

Hyphotesis Test

This analysis tecnique doesn’t need normality test clasic assumtion test to dependent variables (Ghozali, 2006).

1. Judging Regression Model Properity

With significant probability shown 0.822, significant value that got higher than 0.05. So can be conclude that regression model is able to predict observation value and desearve to be usedon next research,because there is no real difference between the clasification that predicted and clasification that observed.

2. Overall Model Fit

Table 2 shows between beginning -2LL value and -2LL last. Value in beginning -2LL (Block Number = 0) is 190,264. Meanwhile in last -2LL (Block Number = 1), after entering five new independent variabels -2LL value get decrease to be 59,671. This likelihood decreasing shows a better regression model on the other hand model that hyphotized fit with data. Means the adding of five new independent variables into researchmodel will revice this research fit model.

3. Parameter Estimation and Intepretation (Regression Coeficient)

Constanta is -2,278 declare that when a value of audit opinion at the previous year, audit quality, financial condition, company’s growth and zero debt default, so logit value audit opinion going concern is -2,278.

RESULT

Test of audit opinion variable at previous year (OP) at table 3 show regression coeficient is 3,362 and probability (Sig) 0,000. Because the signification level of independent variable is less than 0,05 so H0 rejected and Ha1 accepted. Therefore can be conclude that audit opinion at the previous year is significantly influence to audit opinion going concern acceptance. Variable audit quality that proxied with Public Accountant Office size (AQ) in tablel 3 shows regression coeficient is 0,824 with probability level (sig) is 0,263. This indenpendent varible has significant lever higher than 0,05 so H0 accepted and Ha2 rejected. Therefore can be conclude that audit quality isnot significantly influence to probability of audit opinion going concern acceptance. Variable company’s financial condition which is proxied with Altman Z Score (ZSCORE) prediction in table 3 shows regression coeficient is -1,289 with probability level (sig) is 0,002. Because significant level that is had by independent variable is lower than 0,05, so H0 rejected and Ha3 accepted.

CONCLUSION

Based on data analysis and discussion that has been done can be conclude that :

1.       Based on test result use logistic regression shows that variable audit opini previous year significantly influence to audit opinion going concern.

2.       Based on test result use logistic regression shows that variable audit quality doesn’t significantly influence to audit opinion going concern.

3.       Based on test result use logistic regression shows that variable financial condition significantly influence to audit opinion going concern.

4.       Based on test result use logistic regression found that variable company’s growth doesn’t significantly influence to audit opinion going concern.

5.       Based on test result use logistic regression shows that variable debt default significantly influence to audit opinion going concern.