Auditors’ professional skepticism and fraud detection

Abstract

This study aims to examine the effect of competence, independence, experience, and audit time pressure on fraud detection by using the mediation of professional skepticism in the context of internal auditors for the public sector. The research data were obtained through a survey questionnaire on 173 auditors of the Inspectorate General of the Ministry of Education and Culture. The analysis technique in this study used Partial Least Square (PLS). The results showed that competence, independence and audit time pressure had no effect on the ability to detect fraud. Meanwhile, the auditor's experience and professional skepticism had a positive effect on fraud detection. The application of professional skepticism was proven as a mediating variable in the effect of competence, independence, experience and audit time pressure on fraud detection. Auditors’ competence, independence, and experience had a positive effect on professional skepticism and audit time pressure had a negative effect on professional skepticism. The results of this study provide an input that the importance of applying professional skepticism could improve fraud detection.

Scientific competence and health service psychology master’s training: An outline for an applied methodology course.

“…Moreover, introducing trainees to a scientific attitude can have a direct impact on their clinical work. For example, skepticism improves fraud detection (Agustina et al, 2021) and reduces the risk of believing health rumors (He et al, 2021). Increasing humility during training has the potential to improve clinical care (e.g., Spellberg et al, 2021) and supports challenges to dogma and acceptance of evidence-based findings (e.g., Foster, 2019) by acknowledging that not all answers are known and allowing room for continued scientific investigation and exploration.…”

Cognitive dissonance and auditor professional skepticism

“…Auditor dysfunctional behaviors and behavioral intentions have progressively increased with time budget pressure (Pierce and Sweeney, 2004). Time budget pressure constricts auditors, compromises audit quality (DeZoort and Lord, 1997; Agustina et al , 2021), reduces audit effectiveness (McDaniel, 1990) and reduces the depth of testing (Asare et al , 2000). Most auditors believe that time pressure increases over time and that budgeted times are not adequate (Willet and Page, 1996).…”

Determinan Kemampuan Auditor dalam Mendeteksi Fraud

“…Sejumlah penelitian menunjukkan hasil yang memberikan dukungan terhadap pengaruh skeptisme profesional auditor dalam mendeteksi fraud. Misalnya penelitian dari Kusnurhidayanti dan Wahidawati (2020), Agustina et al (2021), juga Said dan Munandar (2018) yang mendapatkan hasil bahwa skeptisme profesional berpengaruh terhadap kemampuan auditor dalam mendeteksi fraud. Namun, hasil yang berbeda ditunjukkan dalam penelitian Ningtyas dkk.…”