Auditor's Opinion of Going Concern: Further Evidence of Audit Quality, Opinion Shopping and Financial Reporting Timeliness in Emerging Market
DOI:
https://doi.org/10.22105/aaa.v1i1.34Keywords:
Going concern,, Audit quality,, Opinion shopping,, Financial reporting timelinessAbstract
The Going Concern (GC) opinion is an auditor's assessment of a company's ability to continue as a GC. This study examines the relationship between audit quality, opinion shopping, timely financial reporting, and GC. Multiple regression analysis was used to test the research hypothesis. The statistical population consisted of 135 companies listed on the Tehran Stock Exchange during 2012-2021 (1350 firm-year observations). The research results indicate a significant positive relationship between audit quality and the auditor's opinion on GC. In addition, the results suggest a negative relationship between opinion shopping and the auditor's GC opinion. However, based on the research findings, no significant relationship was found between timely financial reporting and the auditor's GC opinion.
References
Boynton, W. C., & Johnson, R. N. (2005). Modern auditing: assurance services and the integrity of financial reporting. John Wiley & Sons.
Aprilia, W. (2012). Pengaruh model prediksi kebangkrutan, kualitas audit, pertumbuhan perusahaan, opini audit tahun sebelumnya, dan opinion shopping terhadap opini audit going concern [Thesis]. https://repository.unair.ac.id/6323/. (Jurnal Ekonomi Universitas Airlangga).
Carson, E., Fargher, N. L., Geiger, M. A., Lennox, C. S., Raghunandan, K., & Willekens, M. (2013). Audit reporting for going-concern uncertainty: A research synthesis. Journal of practice & theory, 32(1), 353–384. DOI: 10.2308/ajpt-50324
Ryu, T. G., & Roh, C. Y. (2007). The auditor’s going-concern opinion decision. International journal of business & economics, 6(2), 99–101.
Januarti, I. (2008). analysis of financial ratios and non-financial ratios that influence auditors in providing going concern audit opinions to auditees (empirical study of manufacturing companies listed on the JSE in 2000-2005). Maxi journal, 8(1), 43–58. http://eprints.undip.ac.id/35136/1/JMAKSI_Jan_2008_04_Indira_Januarti.pdf
Praptitorini, M. D., & Januarti, I. (2011). Analysis of the influence of audit quality, debt default and opinion shopping on the acceptance of going concern audit opinions. Indonesian journal of accounting and finance, 8(1), 78–93. DOI: 10.21002/jaki.2011.05
Lennox, C. (2000). Do companies successfully engage in opinion-shopping? Evidence from the UK. Journal of accounting and economics, 29(3), 321–337. DOI: 10.1016/S0165-4101(00)00025-2
Weston, J. F., & Brigham, E. F. (2009). Basics of financial management. Erlangga.
Masyitoh, O. C., & SEAk, D. A. (2010). The analysis of determinants of going concern audit report. Journal of modern accounting and auditing, 6(4), 26-37.
Ohlson, J. A. (1980). Financial ratios and the probabilistic prediction of bankruptcy. Journal of accounting research, 18(1), 109-131. DOI: 10.2307/2490395
DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of accounting and economics, 3(3), 183–199. DOI: 10.1016/0165-4101(81)90002-1
Mutchler, J. F. (1985). A multivariate analysis of the auditor’s going-concern opinion decision. Journal of accounting research, 23(2), 668-682. DOI: 10.2307/2490832
Choi, J. H., Kim, J. B., & Zang, Y. (2010). Do abnormally high audit fees impair audit quality? Journal of practice and theory, 29(2), 115–140. DOI: 10.2308/aud.2010.29.2.115
Francis, J. R., & Yu, M. D. (2009). Big 4 office size and audit quality. Accounting review, 84(5), 1521–1552. DOI: 10.2308/accr.2009.84.5.1521
Lee, H. Y., & Jahng, G. J. (2008). Determinants of audit report lag: Evidence from Korea - An examination of auditor-related factors. Journal of applied business research, 24(2), 27–44. DOI: 10.19030/jabr.v24i2.1352
Defond, M. L., Hu, X., Hung, M. Y., & Li, S. (2012). Has the widespread adoption of IFRS reduced U.S. firms’ attractiveness to foreign investors? Journal of international accounting research, 11(2), 27–55. DOI: 10.2308/jiar-50205
Chung, H., & Lee, E. Y. (2024). Does opinion shopping impair auditor independence? Evidence from tax avoidance. Journal of contemporary accounting and economics, 20(1), 100398. DOI: 10.1016/j.jcae.2023.100398
Archambeault, D., & DeZoort, F. T. (2001). Auditor opinion shopping and the audit committee: An analysis of suspicious auditor switches. International journal of auditing, 5(1), 33–52. DOI: 10.1111/1099-1123.00324
Alfasa, F. (2012). Analysis of factors that influence going concern audit opinions [Thesis]. https://repository.unair.ac.id/1631/.
Anggarini, D., & Zulfikar, Z. (2022). Factors affecting audit opinion going concern. Proceedings of the international conference on economics and business studies (icoebs 2022) (pp. 8–14). Atlantis Press. DOI: 10.2991/aebmr.k.220602.002
Penulis, A. R., & Hutabarat, T. (2001). Analisis Laporan Keuangan. https://pdfs.semanticscholar.org/0faa/8cf2bbf182836ee16a7a0e8a4692ee0b4f38.pdf
Wirawati, N. B. & N. G. P. (2017). Factors that influence the giving of a going concern audit opinion. Udayana university accounting e-journal, 19(1), 109–136. https://jurnal.harianregional.com/akuntansi/id-24797
Kaplan, S. E., & Williams, D. D. (2012). The changing relationship between audit firm size and going concern reporting. Accounting, organizations and society, 37(5), 322–341. DOI: 10.1016/j.aos.2012.05.002
Simamora, R. A., & Hendarjatno, H. (2019). The effects of audit client tenure, audit lag, opinion shopping, liquidity ratio, and leverage to the going concern audit opinion. Asian journal of accounting research, 4(1), 145–156. DOI: 10.1108/AJAR-05-2019-0038
Averio, T. (2020). The analysis of influencing factors on the going concern audit opinion – a study in manufacturing firms in Indonesia. Asian journal of accounting research, 6(2), 152–164. DOI: 10.1108/AJAR-09-2020-0078
Sari, P. C. (2020). The Influence of Audit Lag, Profitability and Liquidity on Going Concern Audit Opinions in Manufacturing Companies Listed on the Indonesian Stock Exchange. Warmadewa accounting research journal, 1(1), 1–7.
Theresia, L., & Setiawan, T. (2023). Audit Tenure, Audit Lag, Opinion Shopping, Liquidity And Leverage, The Going Concern Audit Opinion. Economic journal, 12(03), 1064–1072. http://ejournal.seaninstitute.or.id/index.php/Ekonomi
Downloads
Published
Issue
Section
Categories
License
Copyright (c) 2024 Accounting and Auditing with Applications
This work is licensed under a Creative Commons Attribution 4.0 International License.
Metrics
