Industry Accounting Index And Going Concern Audit Opinion Pre And During Covid-19: Empirical Evidence From Listed Companies In Indonesia

Nurul Aryani Nurkhasanah ,Gatot Soepriyanto
Keywords: Covid-19, Going Concern Audit Opinion, Industry Accounting Index, Discretionary Accruals ,

Abstract

Pandemic has affected on every economic aspect including Companies' growth came to an abrupt and the situation seemed to slowly go back to normal. The financial effect caused by Covid-19 on the going concern and financial reporting could be significant. This study aims to find out the impact of Covid-19 in Indonesian Companies that seen through Industry Accounting Index during Covid-19 for each Industries divided into 8 quarters, and to examine which elements of Industry Accounting Index that have a significant effect on GCAO along with its control variables. The result shows that for overall industries, value creation index in the Covid-19 period is lower than the non Covid-19 period. Different with cost, inventory and leverage indexes that have a higher value in Covid-19 period compared to non Covid-19 period. It can be seen that the Mining Industry is the most affected by Covid-19. Also, an increase for going concern audit opinion post Covid-19 period. Simultaneously, all dimensions of Industry Accounting Index along with its control variables have an effect towards GCAO. Partially, the value creation and cost indexes have an effect towards GCAO, while the inventory and leverage indexes do not have an effect towards GCAO.