Company’s Financial Condition Representing Going Concern Audit Opinion Issue Implication for Substitution Public Accounting Firm (Survey at Public Accounting Firms in Jabodetabek)

Ely Suhayati

ICOBEST 2020 - New Era, the Trend towards Global Challenge after Covid-19 Pandemic - ISBN 978-623-95562-0-4


Clients who have the potential to get a going concern audit opinion are very likely to find auditors with lower quality so that they can provide an opinion that a client supports in accordance with the company's financial condition. The purpose of this study is to determine how big the company's financial condition represents going concern audit opinion issuance and how enormous the implications of going concern audit opinion issuance are for substitution public accounting firm. The method used in this research is descriptive and verification with the Structural Equation Modeling test tool to make it easier to draw conclusions. The sample in this study was 55 public accounting firms in Jabodetabek, with junior and senior public accountant observation units. The results of this study indicate that a bad company's financial condition will not lead to the publication of a going concern audit opinion so that there will also be no substitution public accounting firm. In conclusion, better company financial condition, lower the chances going concern audit opinion issuance, so that lower changing probability the public accounting firm. The impact of this research, as an accountant, should issue an opinion in accordance with the evidence obtained even though there will be a risk of losing a client due to a change in public accountant to fulfill his wishes.

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