Financial Distress, Company Growth, Previous Year's Audit Opinion, and Going concern Audit Opinion

Ni Komang Ayu Parwathi; Made Gede Wirakusuma

doi:10.24843/EJA.2026.v36.i01.p07

Authors

Ni Komang Ayu Parwathi Faculty of Economics and Business, Universitas Udayana, Indonesia
Made Gede Wirakusuma Faculty of Economics and Business, Universitas Udayana, Indonesia

DOI:

https://doi.org/10.24843/EJA.2026.v36.i01.p07

Keywords:

Going concern, Financial Distress, Company Growth, Previous Year’s Audit Opinion

Abstract

A going concern audit opinion is issued when the auditor is worried about an entity's ability to maintain business continuity. The goal of this research is to demonstrate empirically how the financial distress, company growth, and the previous year's audit opinion influence the going concern audit opinion. This study looked at consumer non cyclicals companies that listing on the Indonesian Stock Exchange (IDX) between 2020-2022. Purposive sampling were used to choose 62 enterprises (186 observations) as samples. The data were examined using logistic regression analysis. The results indicate that financial distress negatively influences and the previous year’s audit opinion positively influences the probability of going concern audit opinion. Meanwhile, company growth does not affect the going concern audit opinion.

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