Fraud Detection Skill of External Auditors

DOI

10.2991/978-2-494069-49-7_135How to use a DOI?

Keywords

Competency; Independency; Professional Skepticism; Fraud Detection Skills, Audit Experience

Abstract

After Enron, auditors were required to detect fraud in financial statements. The new accountants do not care about the fraud phenomenon. These new, untrained accounting graduates face shrewd and manipulative fraud perpetrators. Lack of fraud detection skills has become a scathing criticism to accountants. This study aims to examine and provide empirical evidence about the effect of auditor competence, independence, professional skepticism on fraud detection skills. Another objective to test whether auditor experience could moderate that relationship. This is a quantitative research, with primary data obtained from CPA firms in Jakarta as the highest CPAs in Indonesia. Two hundred sets were sent, 192 exemplars were completed and processed with the MRA technique. The study results confirm that competence, independence, and Experience positively affect fraud detection skills. CPAs’ Experience strengthens the positive influence of independence on fraud detection skills. Professional skepticism does not affect fraud detection skills. The information provides additional clues to management regarding fraud prevention policies in an organization. For example, giving rewards or awards can further encourage employees to be honest, responsible, and committed to their organization.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Murtanto
AU  - Harti Budi Yanti
AU  - Ice Nasyrah Noor
AU  - Risa Nurmala Dewi
PY  - 2022
DA  - 2022/12/29
TI  - Fraud Detection Skill of External Auditors
BT  - Proceedings of the 3rd Borobudur International Symposium on Humanities and Social Science 2021 (BIS-HSS 2021)
PB  - Atlantis Press
SP  - 800
EP  - 805
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-49-7_135
DO  - 10.2991/978-2-494069-49-7_135
ID  - 2022
ER  -