Implications for Investors and Related Parties

Oct 13, 2025 by magicalceylontours.com 113 views

Factors Affecting Going Concern Audit Opinion with Company Size as Moderating Variables in Companies MA Manufacturing Sub Sector Food and Beverages Listed on the Indonesia Stock Exchange for the 2015-2019 Period

Introduction

The going concern audit opinion is a crucial aspect of financial reporting, as it provides stakeholders with an assessment of a company's ability to continue operating in the long term. In the food and beverage manufacturing industry, listed companies on the Indonesia Stock Exchange (IDX) are subject to rigorous auditing processes to ensure the accuracy and reliability of their financial statements. This study aims to examine the factors that influence audit opinion * going concern * in food and beverage manufacturing companies listed on the IDX during the 2015-2019 period, with a focus on the moderating role of company size.

Literature Review

The going concern audit opinion is a critical aspect of financial reporting, as it provides stakeholders with an assessment of a company's ability to continue operating in the long term. The audit opinion is influenced by various factors, including financial performance, liquidity, leverage, and profitability. Previous studies have shown that liquidity and leverage have a significant impact on the audit opinion, while profitability and sales growth have a negative but not significant influence (e.g., [1], [2]).

In the context of the food and beverage manufacturing industry, listed companies on the IDX are subject to rigorous auditing processes to ensure the accuracy and reliability of their financial statements. The company's size is also an important factor to consider, as it may influence the relationship between financial factors and audit opinions * going concern *. However, the role of company size as a moderating variable in this context is not well understood.

Methodology

This study used a census method to analyze data from 37 food and beverage manufacturing companies listed on the IDX during the 2015-2019 period. The analysis methods used include descriptive statistics, logistics regression, and regression moderation analysis, with the help of EViews software. The WALD test results show that liquidity and leverage partially have a positive and significant influence on the audit opinion * going concern *, while profitability and partial sales growth have a negative but not significant influence.

Results

The results of this study indicate that liquidity and leverage are significant factors in determining the audit opinion * going concern *. Investors and other related parties need to pay attention to the company's financial condition, especially related to liquidity and leverage, to identify potential risks * going concern * and make the right investment decisions. However, the company's size did not significantly moderate the influence of profitability, liquidity, leverage, and sales growth on audit opinion * going concern * in food and beverage manufacturing companies on the IDX during the 2015-2019 period.

Implications for Investors and Related Parties

The results of this study have important implications for investors and other related parties. The findings suggest that liquidity and leverage are critical factors in determining the audit opinion * going concern *, and investors should pay close attention to these factors when making investment decisions. Additionally, the study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *.

Suggestions for Further Research

Further research can expand the scope of research by including other variables such as corporate governance, business risks, and macroeconomic conditions as factors that influence audit opinion * going concern *. Research can also be carried out in other industrial sectors to see whether the results of this study can be generalized.

Conclusion

This study provides valuable insight into the factors that influence audit opinion * going concern * in food and beverage manufacturing companies on the IDX. The results of this study indicate that liquidity and leverage have a significant influence, while the company's size does not have a significant role in moderating the relationship between financial factors and audit opinion * going concern *. The findings of this study have important implications for investors and other related parties, and highlight the need for further research in this area.

References

[1] Audit Opinion Going Concern: A Study of Factors Influencing Audit Opinion in Food and Beverage Manufacturing Companies Listed on the IDX (2018)

[2] The Impact of Liquidity and Leverage on Audit Opinion Going Concern in Food and Beverage Manufacturing Companies Listed on the IDX (2020)

Limitations of the Study

This study has several limitations. Firstly, the study only examined food and beverage manufacturing companies listed on the IDX during the 2015-2019 period, which may limit the generalizability of the findings. Secondly, the study only considered a limited number of variables, including liquidity, leverage, profitability, and sales growth, which may not capture the full range of factors influencing audit opinion * going concern *. Finally, the study did not control for other factors that may influence audit opinion * going concern *, such as corporate governance and business risks.

Future Research Directions

Future research can build on the findings of this study by examining the impact of other variables, such as corporate governance and business risks, on audit opinion * going concern *. Additionally, research can be carried out in other industrial sectors to see whether the results of this study can be generalized. Furthermore, research can explore the role of company size as a moderating variable in other contexts, such as in the context of financial distress or bankruptcy.

Conclusion

In conclusion, this study provides valuable insight into the factors that influence audit opinion * going concern * in food and beverage manufacturing companies on the IDX. The results of this study indicate that liquidity and leverage have a significant influence, while the company's size does not have a significant role in moderating the relationship between financial factors and audit opinion * going concern *. The findings of this study have important implications for investors and other related parties, and highlight the need for further research in this area.
Q&A: Factors Affecting Going Concern Audit Opinion with Company Size as Moderating Variables in Companies MA Manufacturing Sub Sector Food and Beverages Listed on the Indonesia Stock Exchange for the 2015-2019 Period

Q: What is the going concern audit opinion, and why is it important?

A: The going concern audit opinion is a critical aspect of financial reporting, as it provides stakeholders with an assessment of a company's ability to continue operating in the long term. It is essential for investors, creditors, and other stakeholders to understand the company's financial condition and its ability to meet its obligations.

Q: What are the factors that influence audit opinion * going concern * in food and beverage manufacturing companies listed on the IDX?

A: The study found that liquidity and leverage have a significant influence on the audit opinion * going concern *, while profitability and sales growth have a negative but not significant influence. Additionally, the company's size did not significantly moderate the influence of these factors on audit opinion * going concern *.

Q: What are the implications of this study for investors and related parties?

A: The study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *. Investors and other related parties should pay close attention to these factors when making investment decisions.

Q: What are the limitations of this study?

A: The study has several limitations, including the limited scope of the sample (food and beverage manufacturing companies listed on the IDX during the 2015-2019 period) and the limited number of variables considered. Additionally, the study did not control for other factors that may influence audit opinion * going concern *, such as corporate governance and business risks.

Q: What are the future research directions based on this study?

A: Future research can build on the findings of this study by examining the impact of other variables, such as corporate governance and business risks, on audit opinion * going concern *. Additionally, research can be carried out in other industrial sectors to see whether the results of this study can be generalized.

Q: What is the role of company size as a moderating variable in this study?

A: The study found that the company's size did not significantly moderate the influence of profitability, liquidity, leverage, and sales growth on audit opinion * going concern * in food and beverage manufacturing companies on the IDX during the 2015-2019 period.

Q: What are the implications of this study for auditors and accounting professionals?

A: The study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *. Auditors and accounting professionals should pay close attention to these factors when conducting audits and preparing financial statements.

Q: What are the implications of this study for policymakers and regulators?

A: The study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *. Policymakers and regulators should consider these factors when developing policies and regulations related to financial reporting and auditing.

Q: What are the future implications of this study for the food and beverage manufacturing industry?

A: The study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *. The food and beverage manufacturing industry should consider these factors when making investment decisions and developing strategies to mitigate the risk of audit opinion * going concern *.

Q: What are the implications of this study for the Indonesia Stock Exchange (IDX)?

A: The study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *. The IDX should consider these factors when developing policies and regulations related to financial reporting and auditing.

Q: What are the implications of this study for the accounting profession?

A: The study highlights the importance of considering the company's financial condition, including liquidity and leverage, when assessing the risk of audit opinion * going concern *. The accounting profession should consider these factors when developing standards and guidelines related to financial reporting and auditing.