OPINI AUDIT GOING CONCERN: SUDUT PANDANG LIKUIDITAS, LEVERAGE, FINANCIAL DISTRESS RISK, TAX RISK

Abstract

This study examines the effect of liquidity, leverage, financial distress risk, and tax risk on going concern audit opinion acceptance. The method used in this study uses a quantitative approach. This study's population are all financial sector companies listed on the Indonesia Stock Exchange up to December 31th, 2019. Based on the purposive sampling method carried out for the observation year from 2017 up to 2019, the total sample selected is 84 observations. To test the hypothesis, this study uses logistic regression analysis. The results suggest that liquidity is negatively associated with going concern audit opinion, and financial distress risk is positively associated with going concern audit opinion. Meanwhile, the leverage and tax risk are not considered in providing a going concern audit opinion. As the capital market supervisory agency, this study indicates that the Indonesia Financial Services Authority needs to supervise companies with a going concern audit opinion to improve investor protection in the capital market.