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The Effect of Financial Distress, Debt Default and Audit Tenure on Going Concern Opinion
Bambang Leo Handoko1, Mahdi Kusuma2
1Bambang Leo Handoko*, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
2Mahdi Kusuma, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.

Manuscript received on November 15, 2019. | Revised Manuscript received on November 23, 2019. | Manuscript published on November 30, 2019. | PP: 1049-1054 | Volume-8 Issue-4, November 2019. | Retrieval Number: C6427098319/2019©BEIESP | DOI: 10.35940/ijrte.C6427.118419

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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: One of the accounting assumptions is going concern. Going concern is how company can survive in long time business operation. Going concern becomes very crucial for users of financial statements, namely investors and creditors. If the company in which the investor invests funds and the creditors lend their funds is bankrupt, then the investment and credit lent are in vain and the investor and creditor suffer losses. This study aims to examine the effect of financial distress, debt default, and audit tenure on the acceptance of going concern audit opinion in the period 2014-2018. This study uses secondary data from manufacturing companies financial report which listed in Indonesian Stock Exchange, using purposive sampling method, we obtained 28 companies that are feasible, so that the sample from the study amounted to 140 samples. Statistical tests were performed using SPSS version 24.0 using logistic regression analysis. The results of this study show that financial distress variables have a significant negative effect while debt default and audit tenure have a positive effect on the acceptance of going-concern audit opinion.
Keywords: Financial, Distress, Debt, Default, Audit, Tenure, Opinion, Going, Concern.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind.