Open AccessThe Influences of Solvency, Cash Flow Ratio and Profitabiliy toward Going Concern Opinion
Author(s) -
Ery Yanto,
Pandu Adi Cakranegara
Publication year - 2021
Publication title -
jaaf (journal of applied accounting and finance)
Language(s) - English
Resource type - Journals
eISSN - 2615-8051
pISSN - 2580-1791
DOI - 10.33021/jaaf.v5i1.1467
Subject(s) - solvency , profitability index , going concern , cash flow , business , accounting , stock exchange , audit , stock (firearms) , auditor's report , operating cash flow , actuarial science , finance , market liquidity , mechanical engineering , engineering
In providing an audit opinion, some assumptions must be met, one of which is that it will continue. In terms of corporate sustainability accounting, this is called a going concern. To evaluate whether the company has a going concern, an auditor can look at several indicators. These indicators include solvency, cash flow, and profitability. This study attempts to investigate the effect of these three variables towards audit going concern. Multiple linear regression statistical methods are used to link them with the going concern level. Based on the research results on 56 companies listed on the Indonesia Stock Exchange from 2017 to 2019, it can be concluded that solvency, cash flow, and profitability significantly affect the company.