ABSTRACT

This study aims to find out the relationship between auditors going-concern (GC) opinion,
auditor's’ opinion on audit report, and audit fees associated with bankruptcy. In this paper, We
examine the association between the tendency of auditors to issue going-concerns opinions to
Indonesian bankrupt companies during 2007–2016. Defective independence can result in audit
failure, which includes situations when auditors fail to issue going-concern (GC) opinions and
audit fee to expected bankrupt companies. If auditors question a company’s ability to continue
existing, they should issue a going-concern opinion in the audit report. Whether or not auditors
will issue a going-concern opinion depends on auditors’ ability to identify going concern
problems, as well as their decision whether or not to issue going concern opinions.
Keywords : going-concern opinions; auditor's’ opinion; audit reports; audit fees; bankruptcy
PROBLEM STATEMENT
1. How auditor's going concern opinion influence to the company's bankruptcy ?
2. 2. How is the independence corelation towards the auditor's failure in publishing the
auditor's going concern opinion?
HYPOTHESIS
1. Auditor’s going concern opinion results in higher likelihood of bankruptcy
2. Reduced independence can result in audit failure including situations where companies
were not issued going-concern (GC) audit opinions from their auditors prior to filing
bankruptcy

Kelompok
1. Yudhi Mahendra Hudhasurya 041511333180
2. Mas Silah Khudin 041511333220
3. Antonius Agung K 041511333215