The Effect of Financial Conditions and Disclosure on Going Concern Audit Opinion

The purpose of this study is to determine the effect of financial condition and disclosure on going concern audit opinion. This research is conducted on finance companies listed on the Indonesia Stock Exchange (IDX) in 2015 – 2019. This type of research is quantitative research with sampling using purposive sampling method. The sample used is 70 audited financial statements from 14 companies with an observation period of 5 (five) years. Data analysis techniques used are descriptive statistics, logistic regression analysis and hypothesis testing. The results of the study state that partially the financial condition does not affect the continuity of the audit opinion, and disclosure has an effect on the continuity of the audit opinion. while simultaneously, financial condition and disclosure affect going concern audit opinion.


INTRODUCTION
One of the auditor's considerations in providing an audit opinion is for the continuity of the company's operational activities.The going concern audit opinion is given by the auditor to ensure whether the company can maintain its business continuity or not in the future.Going concern audit opinion is used by users of financial statements as a prediction of the bankruptcy of a company.Opinions on the feasibility of a company's financial statements are issued by an auditor at a Public Accounting Firm (KAP).Therefore, the auditor must be able to account for the results of his opinion (Pratiwi & Lim, 2018) Problems arise when there are many opinion errors made by auditors regarding going-concern opinions.
The determination of the going concern audit opinion is regulated by the Institut Akuntan Publik Indonesia (IAPI) by issuing audit standard 570 which states that the auditor is also responsible for evaluating whether there is a material uncertainty about the entity's ability to continue as a going concern (Jalil, 2019).Statement of Auditing Standards (PSA) No. 29 paragraph 11 letter d *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJstates that substantial doubt about the ability of the business unit to continue as a going concern is a situation that requires the auditor to add an explanatory paragraph in the audit report, even though it does not affect the unqualified opinion expressed by the auditor (Ikatan Akuntansi Indonesia, 2011).Giving a going concern audit opinion on a company's financial statements greatly affects the sustainability of its business in the future.With the going concern audit opinion, the survival of the business is doubtful whether it can survive or not.Going concern audit opinion is an opinion that is not expected by the company because it can have a significant impact on the decline in stock prices, difficulties in increasing loan capital, distrust of investors, creditors, customers and employees towards the management of going concern companies (Andrianto, 2018).
One of the cases related to a going concern audit opinion occurred in a multi-finance company in 2018.Sourced from the CNBC Indonesia website, September 25, 2018, Franedya reported that PT Sunprima Nusantara Pemfundan (SNP Finance) was known to have failed to pay credit to 14 banks and harmed many parties.The SNP Finance case arose after SNP Finance's credit to Bank Panin failed and had Rp 141 billion in arrears.After that, a lawsuit emerged from Bank Mandiri and Bank BCA.Bank Mandiri has disbursed loans of Rp 1.4 trillion to SNP Finance.SNP Finance also has arrears at Bank BCA reaching Rp 200 billion.To cover the nonperforming loans, a Medium-Term Note (MTN) was issued.These medium-term notes are rated by rating agency Pefindo and audited by KAP DeLoitte.This MTN does not go through the OJK process, considering that MTN is a private agreement, but requires a rating because it can be traded.This case resulted in the OJK imposing sanctions on business freezing since May 2018, because it had not submitted information disclosure to all creditors and MTN holders until the deadline for the third warning sanction, in accordance with article 53 of POJK number 29/2014.
In this case, the auditor was deemed unable to detect the potential financial difficulties experienced by SNP Finance in conducting an audit of the Annual Financial Statements by not adding a going concern audit opinion which stated that the company was at risk of bankruptcy.This phenomenon proves that a company that receives a fair opinion does not always guarantee that the company will not go bankrupt and can maintain its business continuity in the future.So it needs a deeper analysis of the going concern audit opinion, with the going concern audit opinion it will be a warning to creditors or other stakeholders.
One way to detect corporate bankruptcy is to look at the company's financial condition.Financial conditions can be a picture of the actual situation that occurs in the company's activities which can be seen from the company's financial statements.This financial report is very much needed by internal and external parties to make economic decisions (CNBC Indonesia, 2018).
If in a period the company's profits get an increase in profits, the *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJcompany's financial condition is in good condition so that the company's survival is guaranteed, in this case it is unlikely that the company will get a going concern audit opinion.The high risk of financial problems requires an assessment of the financial condition so that company management can immediately take action (Yusriwati & Mariyani, 2019).
According to previous research conducted by (Putra et al., 2017) and (Jalil, 2019), it is stated that the condition of the company has an effect on going concern audit opinions.This is not in line with the research of (Hati & Rosini, 2017) which states that financial conditions do not significantly affect the going concern audit opinion.
Another factor that is considered by the auditor in providing a going concern audit opinion is disclosure.Auditors will be helped by the amount of financial statement information disclosed by the company.Auditors will find it easier to assess the condition of the company if the disclosure of information by the company is adequate.The information obtained from the disclosure or disclosure can be used by the auditor in assessing whether the company has reported the company's finances fairly (Kusumayanti & Widhiyani, 2017).
According to (Saputra & Kustina, 2018) disclosure is needed by users to better understand the information contained in financial statements.Financial statements are a source of information that allows users to know the condition of a company.The high disclosure in the financial statements will provide additional evidence to the auditor to ensure that there are survival problems experienced by the company so that the auditor issues a going concern audit opinion.In a study conducted by (Mariana et al., 2018) that disclosure has an effect on going concern audit opinions.However, this is not in line with the research of (Yaqin & Sari, 2015) which states that disclosure has no effect on the acceptance of going concern audit opinions.Due to the inconsistency of the results of previous research that motivates researchers to re-examine.

Going Concern Audit Opinion
Going concern audit opinion is a modified audit opinion given by the auditor if there is doubt about the company's going concern ability or there is significant uncertainty over the company's viability in carrying out its operations within a reasonable period of time, not more than one year after the date of the financial statements being audited.(Ikatan Akuntansi Indonesia, 2011).Going concern is a basic assumption in the preparation of financial statements, a company is assumed to have no intention or desire to liquidate or materially reduce its business scale (Ardiani et al., 2012).According to SPAP SA 705 (2013) states that the auditor has a responsibility in assessing whether there are major doubts about the company's ability to maintain its business continuity (going concern) in a period of time not more than one year from the date of the audit report, the audit opinion *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJon the financial statements provided by the auditor to the auditee is one of the important considerations for investors in assisting the investment decision-making process because the opinion given is a statement of fairness in all material respects.
Going concern audit opinion in this study adopted measurements from research (Effendi, 2019) measured by a dummy variable, namely given a number 1 if it received a going concern audit opinion and given a number 0 if it received a non-going concern audit opinion.

Financial Conditions
The company's financial condition is a complete view of the company's finances for a certain period.Companies that do not experience disturbances in their financial condition, the possibility that the auditor will provide a going concern audit opinion is getting smaller.An overview of the management performance of a company can also be seen from the company's financial condition.Media that can be used to examine the health condition of the company are financial statements consisting of a balance sheet, profit and loss calculation, an overview of retained earnings, and a statement of financial position.In companies that are in bad condition, many indicators of going concern problems are found (Hartas, 2011).
Going concern audit opinion in this study adopted measurements from research (Effendi, 2019) measured by a dummy variable, namely given a number 1 if it received a going concern audit opinion and given a number 0 if it received a non-going concern audit opinion.The company's financial condition is proxied by using the Altman Z Score bankruptcy prediction model.According to Kartika (2012), the measurement of financial condition includes: 1. Profitability Ratio (NPM) 2. Liquidity Ratio (QR) 3. Solvency Ratio (DTA)

Disclosure
Disclosure is the disclosure or explanation, the provision of information by companies, both positive and negative, that may affect an investment decision.Disclosure is the disclosure of all information that the company does which will affect investment decisions (Astuti, 2013).Disclosure is needed by users to better understand the information contained in financial statements.Financial statements are information windows that allow users to know the condition of a company depending on the disclosure level of the financial statements in question.Relevant information about the company's financial position is needed by investors.With the disclosure or explanation of this information, it is hoped that it can help investors in making decisions to invest in a company (Mariana et al., 2018).
In this study, the independent variable of disclosure describes the disclosure or explanation, the provision of information by companies, both positive and negative, that may affect an investment decision.If the company discloses an item of information in its financial statements, then a score *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJ of 1 will be given and if the item is not disclosed, then 0 will be given (Saputra & Kustina, 2018)

Effect of Financial Condition and Disclosure on Going Concern Audit Opinion
Broadly speaking, the financial condition, disclosure and going concern audit opinion are interrelated where when the picture of the company's financial condition is deteriorating, it is possible for the company to get a going concern audit opinion.To provide this opinion, the auditor needs information about the company's financial position in order to assist investors in making decisions to assist a company with a relevant explanation of the information (disclosure).This is in line with the results of research conducted by (Jalil, 2019) that financial conditions affect going concern audit opinions and research conducted by (Kusumayanti & Widhiyani, 2017) H1: It is suspected that financial conditions and disclosures affect the going concern audit opinion.thatdisclosure affects going concern audit opinions.

Effect of Financial Condition on Going Concern Audit Opinion
One way to know the company's performance is to assess the financial condition.
The company's performance can be seen from the analysis of the company's financial statements and stock prices.When the financial condition shows good conditions, it is likely that the auditor will provide a non-going concern audit opinion, and conversely, when the auditor finds evidence that the company's financial condition is in bad condition, it is likely that the auditor will issue a going concern opinion on a company whose financial condition is good.the sick (Hati & Rosini, 2017) This is in line with the results of research conducted (Yusriwati & Mariyani, 2019) that the financial condition experienced by the company will be more likely to get a going concern audit opinion when audited.Research conducted by (Putra et al., 2017) also results in financial conditions that affect going concern audit opinions.In providing a going concern opinion, an auditor is very concerned about the company's financial condition.Companies that have financial problems that are not too serious, such as, do not experience liquidity difficulties, have sufficient working capital, and do not experience an equity deficit usually do not get a going concern opinion (Putra et al., 2017).*Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJH2: It is suspected that the financial condition affects the going concern audit opinion Effect of Disclosure on Going Concern Audit Opinion.
Companies that disclose less accounting information tend to receive a qualified opinion from external auditors.In addition, high disclosure is also associated with the company's efforts to improve its bad image among the public.
The wider the financial information disclosed by companies experiencing poor financial conditions, the auditor will find it easier to find evidence in assessing the company's business continuity.It can be concluded that the higher the company's disclosure level, the higher the possibility of the company receiving a going concern audit opinion.The higher the level of company disclosure, the higher the possibility of the company receiving a going concern audit opinion (Saputra & Kustina, 2018).This is in line with research conducted by (Mariana et al., 2018) that disclosure has an effect on going-concern audit opinion.The research conducted by (Kusumayanti & Widhiyani, 2017) also gives the result that disclosure has an effect on going concern audit opinion.According to (Kusumayanti & Widhiyani, 2017) an entity that discloses more and more will open up opportunities for the auditor to dig deeper into information to find out whether there are doubts about the company's viability and make it easier for the auditor to give his opinion.Providing information about management's plans in overcoming going concern problems indicates that the company is experiencing these problems and there are doubts about business continuity, therefore the company will tend to accept a going concern audit opinion.H3: Allegedly Disclosure Affects Going Concern Audit Opinion.

Types of research
This study uses a type of quantitative research.This research is associative which serves to examine the effect of the independent variable, namely financial condition and disclosure, which affects the dependent variable, namely going concern audit opinion with a moderating variable, namely the previous year's audit opinion.This research was conducted in the financial sector, sub-sector financing for the period 2015 -2019 which is officially listed on the Indonesia Stock Exchange and can be accessed through the website www.idx.co.id and on the website www.idnfinancials.com.The time of the research was carried out since August 2020.

Sample Collection Techniques
The

Data Analysis Techniques
This research uses logistic regression data analysis technique where the dependent variable uses a dummy variable and is measured using a nominal scale.In addition, the independent variables in this study are mixed variables between metric variables and non-metric variables so that normality, heteroscedasticity and autocorrelation tests are not needed on the independent variables (Ghozali, 2018)

Results
This study uses a population of finance companies listed on the Indonesia Stock Exchange for 5 consecutive years, namely the period 2015 -2019.The population results are 20 companies sourced from the website www.sahamok.com.Sampling using purposive sampling method whose criteria have been determined. .

Assessing the Feasibility of the Regression Model (Goodness of Fit Test)
The feasibility of the regression model was assessed using Hosmer and Lemeshow's Goodness of Fit Test.If the statistical value of Hosmer and Lemeshow's goodness of Fit Test < 0.05 then the null hypothesis is rejected, meaning that there is a significant difference between the model and the observed value so that the Goodness fit of the model is not good because the model cannot predict the value of the observations The Chi-Square value or the statistical value of Hosmer and Lemeshow's Goodness of FitTest is 10.888 with a significance probability of 0.208.The significance probability value is greater than 0.05, so hypothesis 0 cannot be rejected and the regression model used fits the data.The results of these data illustrate that the regression model is able to predict the value of the observations.

Assessing Model Fit (Overall Model Fit Test)
The test is done by comparing the value between -2 Log Likelihood (-2LL) at the beginning (Block Number = 0) with a value of -2 Log Likelihood (-2LL) at the end (Block Number = 1).If there is a decrease in the value between the initial -2LL function (initial -2LL function) and the final -2LL value, it indicates that the hypothesized model fits the data The value of -2 Log likelihood Block Number 0 is 30,665 and -2 Loglikelihood Block Number 1 is 23,566.This means that the decrease in the value of -2 Loglikelihood is 7.099.This decrease in the value of -2 Log Likelihood can be interpreted that the addition of independent variables into the model can improve model fit and show a better regression model or in other words the hypothesized model fits the data.

Wald test
The results of the data test can be seen from the Wald table with a significant level of 5% or 0.05.If the probability value is > 0.05 then the hypothesis is rejected, which indicates that the independent variable has no partial effect on the dependent variable 1.The regression coefficient value is -0.343 and the significance value obtained by the financial condition variable (Z Score) is 0.067 where the result is greater than the significance level of 0.05.From these results, it can be concluded that the independent variable in this study, namely the financial condition partially has no significant effect on the dependent variable, namely going concern audit opinion.2. The value of the regression coefficient is -25.022 and the significance value obtained by disclosure is 0.040 where the result is smaller than the significance level of 0.05.From these results, it can be concluded that the independent variable in this study, namely disclosure partially has a significant effect on the dependent variable, namely going concern audit opinion

Omnibus Test of Model Coefficient
This test uses the value of the Omnibus Test of Model Coefficients table by determining the significant level (α) of 5% or 0.05.If the probability value > 0.05 then the hypothesis is rejected, it can be concluded that there is no simultaneous influence between the independent variables and the dependent variable *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJThe value of Cox & Snell R Square is 0.096, which means that the dependent variable can be explained by the independent variable of 9.6%.Based on the test results above, the value of Nagelkerke R Square is 0.272, which means that the dependent can be explained by the independent variable of 27.2%, while the remaining 72.8% is explained by other variables outside the research model.

Effect of Financial Condition and Disclosure on Going Concern Audit Opinion
The test results which state the results of the Omnibus Test of Model Coefficients are known to have a Chi-Square value of 7.098 with a significant probability level of 0.029.The test results indicate that Ha1 is accepted because the significant level is less than 0.05.From these results, it can be concluded that the financial condition and disclosure simultaneously influence the going concern audit opinion.It can be *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJinterpreted that the better the financial condition and disclosure, the higher the going concern audit opinion that will be received.This is in line with the results of research conducted by (Putra et al., 2017) and (Effendi, 2019) which state that financial conditions and disclosures have a significant effect on going concern audit opinions.
This financial report will show the company's financial condition.The agent as the party that produces the financial statements, making it possible to manipulate the data on the financial statements.Therefore, the auditor as a third party bridges the interests of the principal and agent in supervising the performance of management in accordance with the financial statements.Auditors also provide services to assess the fairness of the company's financial statements prepared by agents, with the final result being an audit opinion.The opinion issued by this auditor must be of high quality as indicated by the increasingly objective and transparent company financial information.

Effect of Financial Condition on Going Concern Audit Opinion
The test results stated that the regression coefficient value was -0.343 and a significant value was 0.067.The test results indicate that H2 is rejected because the significant value obtained is 0.067 which is greater than the 0.05 level of significance.From these results, Ha2 is rejected, and it is concluded that the financial condition does not partially affect the going concern audit opinion.
Bad or good financial condition does not affect going concern audit opinion.The financial condition also does not indicate whether the company is experiencing difficulties in maintaining its business continuity.Because if there is a company that does not receive a going concern audit opinion even though the company's financial condition is bad, it is possible that there are several factors considered by the auditor so that the auditor does not provide a going concern audit opinion.One of these factors the company has a good management plan by the auditor to be able to maintain its viability, for example increasing sales and doing business.This research is supported by research conducted by (Ramadhan & Triyanto, 2019) which states that financial conditions have no effect on going concern audit opinions.

Effect of Disclosure on Going Concern Audit Opinion
The test results stated that the regression coefficient value was -25,022 and a significant value was 0.040.The test results indicate that H3 is accepted because the significant value obtained is 0.040 which is smaller than the 0.05 level of significance.From these results, Ha3 is accepted, and it is concluded that disclosure has a partial effect on going concern audit opinion.
The higher the level of disclosure in financial statement information, it indicates the company's inability to carry out operational activities in the future so that the auditor's going concern audit opinion will increase.The high disclosure will provide additional evidence to the auditor to *Corresponding author's e-mail: dosen00883@unpam.ac.id http://openjournal.unpam.ac.id/index.php/EAJensure that there are survival problems experienced by the company so that the auditor issues a going concern audit opinion.This research is supported by research conducted by (Kusumayanti & Widhiyani, 2017) which explains that disclosure has an effect on going concern audit opinion.

CONCLUSION & SUGGESTION
Based on the results of data analysis and discussion that has been stated, the conclusions that can be drawn from this research are as follows: 1