IJRR

International Journal of Research and Review

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Research Paper

Year: 2023 | Month: February | Volume: 10 | Issue: 2 | Pages: 461-473

DOI: https://doi.org/10.52403/ijrr.20230255

The Effect of Debt Default, Audit Lag, Profitability, and Financial Distress on Going Concern Audit Opinion with Firm Size as a Moderating Variable in Mining Companies Listed on the Indonesia Stock Exchange 2016-2020

Hanifah Hasna Ritonga1, Erlina2, Yeni Absah3

1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia

Corresponding Author: Hanifah Hasna Ritonga

ABSTRACT

This study aims to determine whether debt default, audit lag, profitability, and financial distress affect going concern audit opinion. In addition, this study also aims to determine whether firm size can moderate the effect of debt default, audit lag, profitability, and financial distress ongoing concern audit opinions on mining companies listed on the Indonesia Stock Exchange 2016-2020.
The type of research carried out is causal associative research which is carried out using a quantitative approach. The population in this study are mining companies listed on the Indonesia Stock Exchange (IDX) during the 2016-2020 period. Ninety-five observational data were obtained in this study using the purposive sampling technique. The data analysis technique used is logistic regression analysis and interaction test carried out with the help of SPSS software.
The results found in this study indicate that partially debt default, audit lag, and financial distress have a positive and significant effect on going concern audit opinion. Profitability has no significant effect on going concern audit opinion. In contrast, the results of the interaction test on the moderating variable show that firm size cannot moderate the effect of debt default, audit lag, profitability, and financial distress ongoing concern audit opinions on mining companies listed on the Indonesia Stock Exchange 2016-2020.

Keywords: debt default, audit lag, profitability, financial distress, going concern audit opinion, and firm size.

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