The Altman Model and Auditor’s Opinion About Going Concern of the Companies

Ika Prayanthi; Nadya Gabriela Chordina Kakunsi

doi:doi:10.11648/j.sjbm.20170505.12

| Peer-Reviewed

The Altman Model and Auditor’s Opinion About Going Concern of the Companies

Ika Prayanthi, Nadya Gabriela Chordina Kakunsi

Published in Science Journal of Business and Management (Volume 5, Issue 5)

Received: 23 September 2017 Accepted: 17 November 2017 Published: 17 November 2017

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study aimed to examine whether the financial performance, in this case the predictions of Altman Model affect audit going concern opinion. The samples in this study consist of 59 companies and data variables are taken from the Indonesian Capital Market Directory and annual financial statement reporting. This study utilizes the logistic regression. The results from the logistic regression analysis show that every year in the period of the study 2012-2014, percentage correct of research model are 86,4%, 88.1%, and 93.2% respectively. This research also found that every year in the period of study that there is a negative significant effect on prediction of the Altman model towards the audit going concern opinion. In other word, the more a company’s predicted secure by Altman Model, the less likely get a going concern audit opinion. Descriptive analysis also prove that Altman prediction for grey area and secure area are really good in predict auditor’s opinion but not really good in Altman prediction for bankruptcy area.

Published in	Science Journal of Business and Management (Volume 5, Issue 5)
DOI	10.11648/j.sjbm.20170505.12
Page(s)	189-193
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Altman Model, Auditor's opinion, Going Concern

References

[1]	Alichia, Y. P. (2013). Pengaruh Ukuran Perusahaan, Pertumbuhan Perusahaan, dan Opini Audit Tahun Sebelumnya Terhadap Opini Audit Going Concern (Studi Empiris Perusahaan Manufaktur yang Terdaftar Pada Bursa Efek Indonesia). Jurnal Akuntansi, 1 (1), 1-17.
[2]	Altman, E. I. (1968). Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy. The Journal Of Finance, XXIII (4), 589-609.
[3]	Altman, E. I. (2000). Predicting Financial Distress of Companies: Revisiting the Z-Score and ZETA Models*.
[4]	Arens, A. A. (2012). Auditing and Assurance Services. New Jersey: Prentice Hall.
[5]	Dewi, S. P. (2011). Faktor-Faktor Yang Mempengaruhi Opini Going Concern. Jurnal Akuntansi, 11 (2), 513-538.
[6]	Fadilah, I., & Djamhuri, A. (2014). Pengaruh Kadar Kebangkrutan Menurut Model Altman dan Opini Audit Tahun Sebelumnya Terhadap Penerimaan Opini Audit Going Concern (Studi Empiris Pada Perusahaan Manufaktur yang Terdaftar di BEI 2009-2011). Jurnal Ilmiah Mahasiswa FEB, 2 (1), 1-20.
[7]	Fanny, M., & Saputra, S. (2005). Opini Audit Going Concern: Kajian Berdasarkan Model Prediksi Kebangkrutan, Pertumbuhan Perusahaan, dan Reputasi Kantor Akuntan Publik (Studi Pada Emiten Bursa Efek Jakarta). Simposium Nasional Akuntansi VIII, (pp. 966-978). Solo.
[8]	Ikatan Akuntan Indonesia. (2001). Standar profesional akuntan publik. Jakarta: Salemba Empat.
[9]	Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. Journal Of Financial Economics 3, 3 (1), 305-360.
[10]	Komalasari, A. (2004). Analisis Pengaruh Kualitas Auditor dan Proxy Going Concern Terhadap Opini Auditor. Jurnal Akuntansi dan Keuangan, 9 (2), 1-15.
[11]	Kurniati, W. (2012). Prediksi Kebangkrutan, Pertumbuhan Dan Reputasi KAP Terhadap Opini Audit Going Concern. Accounting Analysis Journal, 1 (1), 7-15.
[12]	Meriani, N., & Krisnadewi, K. A. (2012). Pengaruh Kondisi Keuangan, Pertumbuhan Perusahaan, Dan Reputasi Auditor Pada Pengungkapan Opini Audit Going Concern. Jurnal Ilmiah Akuntansi dan Bisnis, 7 (1), 1-29.
[13]	Praptitorini, M. D., & Januarti, I. (2007). Analisis Pengaruh Kualitas Audit, Debt Default dan Opinion Shopping Terhadap Penerimaan Opini Going Concern. Simposium Nasional Akuntansi X, (pp. 1-24). Makasar.
[14]	Ramadhany, A. (2004). Analisis Faktor-Faktor Yang Mempengaruhi Penerimaan Opini Going Concern Pada Perusahaan Manufaktur Yang Mengalami Financial Distress Di Bursa Efek Jakarta. Skripsi, Universitas Diponegoro, Fakultas Ekonomi, Semarang.
[15]	Reeve, J. M., Warren, C. S., & Duchac, J. E. (2011). Principles of Accounting. Boston: South-Western Cengage Learning.
[16]	Rudyawan, A. P., & Badera, I. N. (2009). Opini Audit Going Concern: Kajian Berdasarkan Model Prediksi Kebangkrutan, Pertumbuhan Perusahaan, Leverage, Dan Reputasi Auditor. Jurnal Ilmiah Akuntansi dan Bisnis, 4 (2), 1-20.
[17]	Siska, F. R. (2015). Pengaruh Audit Tenure, Disclosure, Ukuran KAP, Debt Default, Opinion Shopping dan Kondisi Keuangan Terhadap Penerimaan Opini Audit Going Concern. Jurnal Ekonomi, Manajemen dan Akuntansi I, 24 (1), 41-63.
[18]	Susanto, Y. K. (2009). Faktor-faktor yang mempengaruhi penerimaan opini audit going concern pada perusahaan publik sektor manufaktur. Jurnal Bisnis dan Akuntansi, 11 (3), 155-173.
[19]	Tunggal, A. W. (2013). Pokok-Pokok Auditing & Jasa Asurans. Jakarta: Harvarindo.
[20]	Wulandari, S. (2014). Analisis Faktor-Faktor Yang Mempengaruhi Auditor Dalam Memberikan Opini Audit Going Concern. E-Jurnal Akuntansi Universitas Udayana, 6 (3), 531-558.
[21]	Yunida, R., & Wardhana, W. (2013). Pengaruh kualitas audit, kondisi keuangan perusahaan, opini audit tahun sebelumnya, pertumbuhan perusahaan terhadap opini audit Going Concern. Jurnal INTEKNA, Tahun XIII, 1 (1), 54-61.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ika Prayanthi, Nadya Gabriela Chordina Kakunsi. (2017). The Altman Model and Auditor’s Opinion About Going Concern of the Companies. Science Journal of Business and Management, 5(5), 189-193. https://doi.org/10.11648/j.sjbm.20170505.12

Copy | Download

ACS Style

Ika Prayanthi; Nadya Gabriela Chordina Kakunsi. The Altman Model and Auditor’s Opinion About Going Concern of the Companies. Sci. J. Bus. Manag. 2017, 5(5), 189-193. doi: 10.11648/j.sjbm.20170505.12

Copy | Download

AMA Style

Ika Prayanthi, Nadya Gabriela Chordina Kakunsi. The Altman Model and Auditor’s Opinion About Going Concern of the Companies. Sci J Bus Manag. 2017;5(5):189-193. doi: 10.11648/j.sjbm.20170505.12

Copy | Download

@article{10.11648/j.sjbm.20170505.12,
  author = {Ika Prayanthi and Nadya Gabriela Chordina Kakunsi},
  title = {The Altman Model and Auditor’s Opinion About Going Concern of the Companies},
  journal = {Science Journal of Business and Management},
  volume = {5},
  number = {5},
  pages = {189-193},
  doi = {10.11648/j.sjbm.20170505.12},
  url = {https://doi.org/10.11648/j.sjbm.20170505.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20170505.12},
  abstract = {This study aimed to examine whether the financial performance, in this case the predictions of Altman Model affect audit going concern opinion. The samples in this study consist of 59 companies and data variables are taken from the Indonesian Capital Market Directory and annual financial statement reporting. This study utilizes the logistic regression. The results from the logistic regression analysis show that every year in the period of the study 2012-2014, percentage correct of research model are 86,4%, 88.1%, and 93.2% respectively. This research also found that every year in the period of study that there is a negative significant effect on prediction of the Altman model towards the audit going concern opinion. In other word, the more a company’s predicted secure by Altman Model, the less likely get a going concern audit opinion. Descriptive analysis also prove that Altman prediction for grey area and secure area are really good in predict auditor’s opinion but not really good in Altman prediction for bankruptcy area.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Altman Model and Auditor’s Opinion About Going Concern of the Companies
AU  - Ika Prayanthi
AU  - Nadya Gabriela Chordina Kakunsi
Y1  - 2017/11/17
PY  - 2017
N1  - https://doi.org/10.11648/j.sjbm.20170505.12
DO  - 10.11648/j.sjbm.20170505.12
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 189
EP  - 193
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20170505.12
AB  - This study aimed to examine whether the financial performance, in this case the predictions of Altman Model affect audit going concern opinion. The samples in this study consist of 59 companies and data variables are taken from the Indonesian Capital Market Directory and annual financial statement reporting. This study utilizes the logistic regression. The results from the logistic regression analysis show that every year in the period of the study 2012-2014, percentage correct of research model are 86,4%, 88.1%, and 93.2% respectively. This research also found that every year in the period of study that there is a negative significant effect on prediction of the Altman model towards the audit going concern opinion. In other word, the more a company’s predicted secure by Altman Model, the less likely get a going concern audit opinion. Descriptive analysis also prove that Altman prediction for grey area and secure area are really good in predict auditor’s opinion but not really good in Altman prediction for bankruptcy area.
VL  - 5
IS  - 5
ER  -

Copy | Download

Author Information

Ika Prayanthi

Departement of Economic Faculty, Universitas Klabat, Airmadidi, Indonesia
Nadya Gabriela Chordina Kakunsi

Departement of Economic Faculty, Universitas Klabat, Airmadidi, Indonesia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ika Prayanthi, Nadya Gabriela Chordina Kakunsi. (2017). The Altman Model and Auditor’s Opinion About Going Concern of the Companies. Science Journal of Business and Management, 5(5), 189-193. https://doi.org/10.11648/j.sjbm.20170505.12

Copy | Download

ACS Style

Ika Prayanthi; Nadya Gabriela Chordina Kakunsi. The Altman Model and Auditor’s Opinion About Going Concern of the Companies. Sci. J. Bus. Manag. 2017, 5(5), 189-193. doi: 10.11648/j.sjbm.20170505.12

Copy | Download

AMA Style

Ika Prayanthi, Nadya Gabriela Chordina Kakunsi. The Altman Model and Auditor’s Opinion About Going Concern of the Companies. Sci J Bus Manag. 2017;5(5):189-193. doi: 10.11648/j.sjbm.20170505.12

Copy | Download

@article{10.11648/j.sjbm.20170505.12,
  author = {Ika Prayanthi and Nadya Gabriela Chordina Kakunsi},
  title = {The Altman Model and Auditor’s Opinion About Going Concern of the Companies},
  journal = {Science Journal of Business and Management},
  volume = {5},
  number = {5},
  pages = {189-193},
  doi = {10.11648/j.sjbm.20170505.12},
  url = {https://doi.org/10.11648/j.sjbm.20170505.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20170505.12},
  abstract = {This study aimed to examine whether the financial performance, in this case the predictions of Altman Model affect audit going concern opinion. The samples in this study consist of 59 companies and data variables are taken from the Indonesian Capital Market Directory and annual financial statement reporting. This study utilizes the logistic regression. The results from the logistic regression analysis show that every year in the period of the study 2012-2014, percentage correct of research model are 86,4%, 88.1%, and 93.2% respectively. This research also found that every year in the period of study that there is a negative significant effect on prediction of the Altman model towards the audit going concern opinion. In other word, the more a company’s predicted secure by Altman Model, the less likely get a going concern audit opinion. Descriptive analysis also prove that Altman prediction for grey area and secure area are really good in predict auditor’s opinion but not really good in Altman prediction for bankruptcy area.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Altman Model and Auditor’s Opinion About Going Concern of the Companies
AU  - Ika Prayanthi
AU  - Nadya Gabriela Chordina Kakunsi
Y1  - 2017/11/17
PY  - 2017
N1  - https://doi.org/10.11648/j.sjbm.20170505.12
DO  - 10.11648/j.sjbm.20170505.12
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 189
EP  - 193
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20170505.12
AB  - This study aimed to examine whether the financial performance, in this case the predictions of Altman Model affect audit going concern opinion. The samples in this study consist of 59 companies and data variables are taken from the Indonesian Capital Market Directory and annual financial statement reporting. This study utilizes the logistic regression. The results from the logistic regression analysis show that every year in the period of the study 2012-2014, percentage correct of research model are 86,4%, 88.1%, and 93.2% respectively. This research also found that every year in the period of study that there is a negative significant effect on prediction of the Altman model towards the audit going concern opinion. In other word, the more a company’s predicted secure by Altman Model, the less likely get a going concern audit opinion. Descriptive analysis also prove that Altman prediction for grey area and secure area are really good in predict auditor’s opinion but not really good in Altman prediction for bankruptcy area.
VL  - 5
IS  - 5
ER  -

Copy | Download