The Effect of Financial Distress and Auditor's Reputation on Going Concern Audit Opinion Study on Manufacturing Companies

Abstract

This study was designed to examine financial distress and auditor reputation of the audit going concern opinion. The hypothesis was to test whether financial factors (financial distress) and non-financial (auditor reputation) affect the establishment of audit opinion going concern. 66 manufacturing companies listed in Indonesia Stock Exchange period 2016- 2018 has been used as samples of this research. The sampling technique was performed according to the purposive sampling method. The logistic regression was used in order to test this hypothesis. The results in this study concluded that: (1) Financial Distress positively affect but does not significant to the going concern audit opinion. (2) The auditor's reputation positively affect to the going concern audit opinion.