THE EFFECT OF COMPANY SIZE, PROFITABILITY RATIO, AND PRIOR OPINION ON GOING CONCERN OPINION

Abstract

This research quantitatively examines the effect of company size, profitability ratio, and previous year audit opinion on going-concern audit opinions. The population includes financial companies listed on the Indonesia Stock Exchange (IDX) between 2021 and 2023, from which the samples of 192 data are selected through purposive sampling with data cut off as of March 31, 2024. The type of data used is secondary data. The data are derived from the financial report for the 2021-2023 period submitted on the official IDX website, IDX Channel. The results of the hypothesis testing by logistic regression analysis show that company size has no effect on going-concern audit opinions; profitability ratio has a negative effect on going-concern audit opinions; and the previous year audit opinion has a positive effect on going-concern audit opinions. The research results, thus, suggest that auditors consider profitability ratio and previous year audit opinion when presenting a going-concern audit opinion.