Revealing Factors Affecting Going Concern Audit Opinion in Mining Companies in Indonesia

Oct 13, 2025 by wbrum.org 52 views

Revealing Factors Affecting Going Concern Audit Opinion in Mining Companies in Indonesia

This study aims to examine the factors that influence audit opinion going concern in mining companies listed on the Indonesia Stock Exchange (IDX) during the 2016-2019 period. The focus of this research is to determine the simultaneous and partial effects of several variables, namely:

Size of the Public Accountant Firm (KAP)

Does the larger KAP provide an audit opinion going concern which is more conservative? The size of the public accountant firm (KAP) is an important factor in determining the quality of audit services. A larger KAP is expected to have more adequate resources and expertise to conduct a deeper audit and assess the risk going concern better.

Company Size

Does a larger company have a lower risk going concern? Company size is another important factor that can influence audit opinion going concern. A larger company is expected to have more resources and a lower risk of going concern.

Audit Tenure

Does the long auditor period affect the audit opinion going concern? Audit tenure is the length of time that an auditor has been working with a company. A longer auditor period is expected to have a positive effect on audit opinion going concern.

The Previous Year's Audit Opinion

Does the previous year's audit opinion affect the current year's audit opinion? The previous year's audit opinion is an important factor that can influence the current year's audit opinion. An auditor tends to consider the previous year's audit opinion in determining the current year's audit opinion, especially if there are indications of the risk going concern in the previous year.

Audit Delay

Does the delay in the audit affect the audit opinion going concern? Audit delay is the time taken by an auditor to complete the audit process. A delay in the audit can be interpreted as a signal of a problem in the company, so the auditor is more likely to provide an unprofitable audit going concern.

Leverage

Does the company's leverage level affect audit opinion going concern? Leverage is the ratio of a company's debt to its equity. A high level of leverage can be an indicator of financial risk, but this does not always show risk going concern.

Methodology

This study uses an audited annual financial statement data from mining companies on the IDX accessed through the website www.idx.co.id. The analysis methods used include descriptive statistical analysis and logistics regression analysis with the help of SPSS software.

Results

The results showed that all variables simultaneously affect the audit opinion going concern. However, partially, only variable size cap, the previous year's audit opinion, and Audit Delay which has a significant influence on audit opinion going concern in mining companies listed on the IDX for the period study.

Deeper Analysis

Effect of KAP Size

Research findings show that larger KAP has a significant influence on audit opinion going concern. This may be due to the larger KAP has more adequate resources and expertise to conduct a deeper audit and assess the risk going concern better.

Effect of Audit Opinion Previous Year

The previous year's audit opinion had a significant influence on the current year's audit opinion. This shows that the auditor tends to consider the previous year's audit opinion in determining the current year's audit opinion, especially if there are indications of the risk going concern in the previous year.

Audit Effects Delay

This study also found that delays in audits have a significant influence on audit opinion going concern. Audit delay can be interpreted as a signal of a problem in the company, so the auditor is more likely to provide an unprofitable audit going concern.

Other Considerations

Although this study found that company size, audit tenure, and leverage had no significant influence on audit opinion going concern, these factors still need to be considered in the context of risk assessment going Concern.

Company Size

Although it does not have a significant effect, smaller companies may have access to more limited resources and are more vulnerable to risk going concern.

Audit Tenure

Relationship between auditor time period and audit opinion going concern may be complex and influenced by other factors, such as auditor quality and company risk level.

Leverage

High level of leverage can be an indicator of financial risk, but this does not always show risk going concern.

Implications for Stakeholders

The results of this study have important implications for various stakeholders, including:

Investor

Information about audit opinion going concern can help investors in assessing investment risk in mining companies.

Creditors

Creditors can use this information to assess the company's ability to fulfill their financial obligations.

Regulator

The results of this study can be a material for regulatory consideration in improving accounting and audit standards in Indonesia.

Company Management

Company management can use the findings of this research to identify the factors that influence audit opinion going concern and take steps to minimize risk going concern.

Further Research Development

Further research can consider other factors that might affect audit opinion going concern, such as:

Audit Quality

The Effect of Audit Quality on Audit Opinion Going Concern.

Economic Conditions

The Effect of Macro Economic Conditions on Audit Opinion Going Concern in mining companies.

Good Corporate Governance

The Effect of Application of Good Corporate Governance on Audit Opinion Going Concern.

By understanding the factors that influence audit opinion going concern, it is expected to improve the quality of financial information available to the public and improve the accountability of mining companies in Indonesia.

Q: What is the main objective of this study?

A: The main objective of this study is to examine the factors that influence audit opinion going concern in mining companies listed on the Indonesia Stock Exchange (IDX) during the 2016-2019 period.

Q: What are the variables that were studied in this research?

A: The variables that were studied in this research include:

Size of the Public Accountant Firm (KAP)
Company Size
Audit Tenure
Previous Year's Audit Opinion
Audit Delay
Leverage

Q: What is the significance of this study?

A: This study is significant because it provides insights into the factors that influence audit opinion going concern in mining companies listed on the IDX. The findings of this study can help investors, creditors, regulators, and company management to make informed decisions.

Q: What are the implications of this study for stakeholders?

A: The implications of this study for stakeholders include:

Investors: Information about audit opinion going concern can help investors in assessing investment risk in mining companies.
Creditors: Creditors can use this information to assess the company's ability to fulfill their financial obligations.
Regulators: The results of this study can be a material for regulatory consideration in improving accounting and audit standards in Indonesia.
Company Management: Company management can use the findings of this research to identify the factors that influence audit opinion going concern and take steps to minimize risk going concern.

Q: What are the limitations of this study?

A: The limitations of this study include:

The study only examined mining companies listed on the IDX during the 2016-2019 period.
The study only considered a limited number of variables that may influence audit opinion going concern.
The study did not consider other factors that may influence audit opinion going concern, such as audit quality and economic conditions.

Q: What are the recommendations for further research?

A: The recommendations for further research include:

Examining the effect of audit quality on audit opinion going concern.
Examining the effect of macro economic conditions on audit opinion going concern in mining companies.
Examining the effect of good corporate governance on audit opinion going concern.

Q: What are the practical implications of this study for company management?

A: The practical implications of this study for company management include:

Identifying the factors that influence audit opinion going concern and taking steps to minimize risk going concern.
Improving the quality of financial reporting and disclosure to reduce the risk of audit opinion going concern.
Enhancing the company's governance and risk management practices to reduce the risk of audit opinion going concern.

Q: What are the implications of this study for regulators?

A: The implications of this study for regulators include:

Improving accounting and audit standards in Indonesia to reduce the risk of audit opinion going concern.
Enhancing the oversight and monitoring of mining companies to reduce the risk of audit opinion going concern.
Providing guidance and support to mining companies to improve their governance and risk management practices.

Q: What are the implications of this study for investors?

A: The implications of this study for investors include:

Using information about audit opinion going concern to assess investment risk in mining companies.
Considering the factors that influence audit opinion going concern when making investment decisions.
Diversifying investments to reduce the risk of audit opinion going concern.