ANALISIS PENGARUH FAKTOR KEUANGAN DAN MEKANISME TATA KELOLA PERUSAHAAN TERHADAP OPINI AUDITOR DENGAN PENJELASAN TENTANG GOING CONCERN

This research is an empirical study over one of the problematic issue in Auditing, that is company�s likelihood of receiving auditor�s opinion with explanatory paragraph about going concern. Prior research suggests that the going concern reporting decision is one of the most difficult and ambiguous task. This difficulty and ambiguity may render the auditor susceptible to management pressure. SAS 59 directs auditor to consider not only financial information, but also the nature of management�s plans and ability to mitigate periods of financial distress successfully. Corporate governance factors reflect attributes of control, oversight, and support of management�s plans and actions intended to overcome financial distress. The purpose of this study is to discover the influence of financial factors and corporate governance mechanism over company�s likelihood of receiving opinion with explanatory paragraph about going concern. Financial factors consist of ratios such as liquidity, profitability, and leverage. Corporate governance is measured by audit committee affiliation, audit committee effectiveness, and blockholder ownership. This study uses 21 samples of financial distressed companies, which experienced a decrease in cash flow from continuing operation from positive to negative and in the debt default status. Logistic regression result shows that liquidity, audit committee effectiveness, and blockholder ownership affect company�s likelihood of receiving opinion with explanatory paragraph about going concern at level of significance 5%