The Effect Of Financial Distress And Company Growth On Going Concern Audit Opinion (Empirical Study of Financial Companies Listed on the Indonesia Stock Exchange 2021–2023)

Abstract

This study aimed to study how financial distress and company growth affected the going concern audit opinion. Object of this study were financial companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. This study was based on inconsistent findings and an increased risk of business failure in the financial sector due to economic changes and market fluctuations. Therefore, auditors were required to reassess the company's ability to maintain its business continuity. Of the 108 companies, 27 were selected as samples using a purposive sampling method. Data analysis was performed using logistic regression in SPSS Version 25. The results indicated that financial distress had a positive and significant effected on the going concern audit opinion, and company growth did not affect the going concern audit opinion. These results indicated that financial condition was the primary factor auditors considered when assessing a company's business sustainability.