34 imposed from outside and another similar activities IAI, 2001:
Section 341, PSA 30. Going concern issue is divided into two, namely the financial
and operating problems. Financial problems include a shortage deficiency liquidity, deficiency of equity, debt delay in payment,
and the difficulty of obtaining funds. While the problem of operations include operating losses continuously, prospecting
dubious income, operating capability is threatened, and weak controls over operations Altman and McGough, 1974 in Setiawan,
2006: 61.
g. Going Concern Audit Opinion
Auditor as an independent party in the examination of the companys financial statements and will provide an opinion on the
financial statements audited. The audit opinion given by the auditor through several stages of the audit so the auditor can give
conclusions on opinions must be given to the financial statements audited Petronela, 2004: 47. Going concern audit opinion is
modified audit opinion in the auditors judgment there is an inability or significant doubt on the viability of the company to run
its operations IAI, 2001: Section 341, PSA 30.
35 Mutchler 1984, in Yusnitasari and Setiawan 2003: 69,
shows the going concern decisions taken through the following three-step process:
1. Identification of entity with potential going concern issue. 2. Determine whether the entity with the issue of going concern
must accept the audit report of the going concern. 3. Choosing between the two types of audit reports going concern,
namely reasonable modifications to the audit report without reservation or disclaimer.
Meanwhile, Ellingsen et. al. 1989 in Yusnitasari and Setiawan 2003: 71, suggesting the decision-making procedures of
going concern is based on SAS 59: 1. Are the results of audit procedures indicate substantial doubt
about the companys ability to keep alive in business during the reasonable period of time? If the answer is no, then the auditor
has met its responsibilities in accordance with SAS 59. If the answer is yes, then the auditor will conduct the next stage.
2. Analyzing the management plan and assess the ability of the plan can be implemented effectively.
3. Does the substantial doubt still exist? If not, then no need to make modifications to the audit report. If yes, then step four 4
must be done.
