Auditors Responsibilities Qualified Opinion Pendapat Wajar Tanpa Pengecualian

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6. Previous Year Audit Opinion

The audit opinion previous years is the audit opinion that auditee received in the previous year or one year before the research of the independent auditor. The audit opinion can be divided into 2 of the going concern audit opinion and non-going concern audit opinion. Going concern audit opinion previous years can be considered to reissue the auditors opinion on the audit next year. Mutchler 1984 states that the company which receiving going concern audit opinion on the previous year were more likely to receive the same opinion in the current year. This is because when the auditors give going concern audit opinion on the previous year, the company is is considered have problems in going concern so that auditors tend to give a going concern audit opinion back in the current year. 44

B. The Results of Previous Research

Research on the going concern audit opinion has been widely applied, by modifying the different variables. The following is a summary of previous research on the factors that affect the going concern audit opinion. These studies has provided feedback as well as an additional contribution to analyze the factors that may affect the going concern opinion. The following is a summary of previous research on the factors that affect the going concern audit opinion: Table 2.1 Previous Research No Researcher Year Tittle of Research Research Methods Research Result Variables Difference 1. Susan Parker; Gary F Peters; Howard FTuretsky 2005 “Corporate Governance Factors and Auditor Going Concern Assessments” Variabel Independen : - Changes of BoD - leverage - company size - institutional ownership -Method: Cox Regression -population: financial companies distress in USA -Observation Period: 1988-1996 Changes CEO, Board independence, change of directors, the number of audit committee members, leverage, interest coverage ratio, the ratio operating risks, current ratio, company size affect the going concern audit opinion. Block ownership, ownership of board members, has no effect. Continued to next page 45 Table 2.1 Continued No Researcher Year Tittle of Research Research Methods Research Result Variables Difference 2. Arum Ardianings ih 2012 “Analysis of Good Corporate Mechanism To Going Concern Audit Opinion Variable Independent: - change Boc - change Bod - Committee audit - Quality of KAP Observation period: 2004-2006 Population: of Companies manufacture listed on the Stock Exchange Boc change does not affect going concern audit opinion. Bod change significantly affect the going concern audit opinion. Audit Committee does not significantly affect going concern audit opinion. Quality of KAP significantly affect the going concern audit opinion. 3. Ema Diandra Adjani, Surya Raharja 2013 The Analysis of Influence Corporate Governance to Going Concern Audit Opinion by Independent Auditor Variable independent : - Independent Commissioner - Managerial Ownership - Institutional Ownership The population in this study are manufacture company listed on the Stock Exchange in the year 2009-2011 Managerial Ownership is affect to going concern audit opinion by the independent auditor. Independent Commissioner and Institutional Ownership are does not affect the going concern opinion by independent auditor. 4. Edward Akiko Wibisono 2013 Bankruptcy prediction, the previous years audit, size of the company towards going concern audit opinion Variable leverage, and the results of the previous years audit. -bankruptcy prediction - Company size The population in this study are manufacture company listed on the Stock Exchange in the year 2009-2011 Leverage does not affect the reception of going concern audit. The audit opinion previous years partially have a significant impact on the going concern audit opinion. Continued to next page 46 Table 2.1 Continued No Reseacher Year Tittle of Research Research Methods Research Result Variables Difference 5. Yashita Putri Alicia 2013 Effect of company size, growth, and previous year opinion on going concern opinion. Empirical studies on manufacture companies listed on the Stock Exchange. Variable Independent - company size - company growth - previous year audit opinion. -Variable Good corporate Governance, and leverage. - Population used is the manufacture company listed on the Stock Exchange in the year 2009- 2011. Company Size positive effect on the going concern audit opinion, audit opinion previous years positive significant effect on the going concern audit opinion, which means that companies that receive accept the audit opinion previous years it had the greater the probability of getting going concern audit opinion. 6. Yunseung Hsu, Chi- Chen Wang, Tzeu-Chen Han 2014 The Impacts of Corporate Governance, Audit system to Business Failure of Going Concern Firms Variable profitability - director’s pledging ratio - shareholder ratio - audit system - company age - company size - liquidity - operation fund to total asset ratio - operation cash flow to total asset ratio - leverage - economic prosperity The population used in this research include Taiwan listed Companies which have been issued gong concern suspect report. Base on analysis result using log logistic model conducted that director’s pledging ratio, shareholding ratio, audit system, company age have a significant level to going concern. Company size, liquidity ratio, operation fund to total asset ratio, operation cash flow to total assets ratio, leverage ratio, economic prosperity does not have a significant level to going concern. Continued to next page