THE IMPACT OF SUSTAINABILITY REPORT AND FINANCIAL PERFORMANCE ON GOING CONCERN AUDIT OPINION

Abstract

This research examines the impact of sustainability reports and financial performance on audit opinions regarding going concern. A sustainability report is measured using the formula of the number of sustainability items disclosed by the company divided by 91 items (based on GRI Standards). Financial performance is proxied by leverage, which is assessed using the Debt to Asset Ratio (DAR) and Return on Asset (ROA). This research uses secondary data from 70 manufacturing companies listed on the Indonesia Stock Exchange during the 2021-2023 period, resulting in 210 data. The research data was obtained from S&P Capital IQ, sustainability reports, and financial statements published by the companies. The researcher took a purposive sampling method, and the data was analyzed using Stata version 17 with logistic regression analysis. The results of this research found that sustainability reports tend to receive lower going concern audit opinions, which is not proven. Financial performance, proxied by DAR, tends to receive higher going concern audit opinions, which is proven. Financial performance, proxied by ROA, tends to receive lower going concern audit opinions, which is not proven.