The Influence of Rentability, Current Ratio, Solvency on Bankruptcy Audit Risk in Manufacture Sector

Abstract

Manufacturing companies are sector companies that are quite important for the country's development. Overall at mostly Asian developing country, more corporations engaged in public manufacturing the capital market. Manufacture becomes the most population compared to companies engaged in other sectors. This research aims to obtain applied literature outcome about influence source from rentability, current ratio, and solvency on probability of risk of bankruptcy discovered by auditor. Going concern measured and stated by dichotomous factors, namely substantial doubt about going concern or not. There were total of 108 observations used in this research. Hypothesis testing uses logistic regression analysis techniques and is processed using the SPSS 23.0 software. This research conclude that there was no significant effect between profitability also solvency to discovered by auditor of probability of risk of bankruptcy but, there is significant effect between liquidity or current ratio towards the discovered by auditor of probability of risk of bankruptcy.