THE EFFECTS OF PROFITABILITY AND INVESTMENT DECISIONSON RECEIPT OF GOING CONCERN AUDIT OPINIONS

Abstract

Ahigh level of profitability and profitable investments indicate that a company is capable of running its business correctly, and thus maintainingits existence (going concern). Several ratios,(ROE, ROA), and TAG, can be used to measure profitability and show the ability of an entityto maintain its survival. The auditor must evaluate whether there is great doubt about the entity's ability to sustain its life. The purpose of this study was to determine the magnitude of the effect of profitability, and investment decisions on acceptance of going concern audit opinion. Hypothesis testing is done by testing the logistic regression coefficient to what extent all independent variables in the model have an influence on the dependent variable. The results show that profitability (ROE = 0.018, ROA = 0.010), and TAG = 0.001 have a positive effect on the acceptance of going-concern audit opinion in the current year. This shows that the greater the value of a company's profitability ratio, the greater the company's ability to generate profits so that there is no doubt the auditor of the company's ability to continue its business.