The Effect of Eco Efficiency, Number of Audit Committees and Sustainability Report on Going Concern Audit Opinion

Abstract

The evaluation of a business's ability to continue its operations, known as the "going concern," holds paramount importance for management. A crucial indicator of this assessment is the going concern audit opinion, a factor that not only enhances investor confidence but also serves as a guarantee for companies facing potential issues regarding their continuity. This research focuses on exploring the impact of eco efficiency, the quantity of audit committees and boards of commissioners, as well as sustainability reports on the formulation of going concern audit opinions within the mining sector companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2022. Utilizing secondary data in the form of audited financial statements, the study employs Structural Equation Modeling - Partial Least Square (SEM-PLS) for data analysis. The findings underscore that eco efficiency, the presence of audit committees and boards of commissioners, and the disclosure of sustainability reports exert a notable influence on the determination of going concern audit opinions for the examined companies. These outcomes contribute valuable insights into the multifaceted factors shaping the credibility and assurance surrounding the ongoing viability of businesses in the mining sector.