THE INFLUENCE OF AUDIT QUALITY, CASH FLOW TO TOTAL DEBT, DEBT TO TOTAL ASSET AND OPINION SHOPPING TO GOING CONCERN AUDIT OPINION STUDY IN MANUFACTURING COMPANIES LISTED IN IDX 2011-2013

Abstract

The objective of this study is to determine the influence of audit quality, cash flow to debt, debt to asset and opinion shopping to going concern audit opinion. Sample in this research is 59 manufacturing companies listed in IDX for period 2011-2013. Audit quality is measured by the reputation of Auditor whether it comes from Big Four or Non Big Four public accounting firm which audited the company. Cash flow to debt is proxied by cash flow to total debt ratio, cash flow from operation over total liabilities . Then, debt to asset is proxied by debt to total asset ratio which is calculated by dividing total liabilities over total asset. Opinion shopping is measured by the changes of auditor into big four or non big four public accounting firm. The result showed that audit quality and opinion shopping are not significantly affect the receiving of going concern audit opinion. For cash flow to debt and debt to asset are significantly affect going concern opinion with negative and positive relationship respectively. This research is useful for the investor, management, further researcher, creditor and other external users of the financial statement to determine the risk and provide solution to company’s going concern problem.