The Effect Of Financial Condition, Prior Audit Opinion, And Debt Default On Going Concern Opinion
DOI:
https://doi.org/10.24905/icobis.v2i1.101Keywords:
financial condition, prior audit opinion, debt default, profitability, going concern audit opinionAbstract
This study examines the effect of financial condition, prior audit opinion, and debt default on going concern audit opinion, with profitability as a moderating variable, in property and real estate companies listed on the Indonesia Stock Exchange during 2021–2025. The research uses a quantitative approach and secondary data obtained from annual financial statements. The sample was selected through purposive sampling, resulting in 44 companies or 220 firm-year observations. Financial condition was measured using the modified Altman Z-Score, prior audit opinion and going concern audit opinion were measured using dummy variables, debt default was proxied by the debt-toequity ratio, and profitability was measured by return on assets. Data analysis employed logistic regression and moderated regression analysis. The results show that financial condition has a positive and significant effect on going concern audit opinion, while prior audit opinion also has a positive and significant effect. Debt default does not have a significant effect on going concern audit opinion. Profitability does not significantly moderate the effects of financial condition, prior audit opinion, or debt default on going concern audit opinion. These findings indicate that the auditor's assessment is more strongly associated with the company's financial condition and prior audit opinion, while profitability does not significantly strengthen or weaken the tested relationships.
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