Can forensic and investigation audit and whistleblowing detect fraud during the Covid-19 pandemic?

Abstract

This study aims to determine the effect of forensic audits, investigative audits, and whistleblowing on fraud detection during the COVID-19 pandemic. The sample in this study were auditors working at BPKP, BPK, and Inspectorate with a total of 90 respondents who were taken by purposive sampling method. The research data was tested using multiple regression tests. This study found that the characteristics of a forensic audit consisting of independence, objectivity, and professional skepticism can influence fraud detection. In addition, investigative audits consisting of experience and capabilities as well as whistleblow­ing variables have also been shown to influence fraud detection during the COVID-19 pandemic. Based on the overall results of the study, fraud detection during the COVID-19 pandemic can be improved by various strategies, especially from the internal side, namely the quality of an auditor. Various efforts can be made, namely increasing independence, objectivity, and professional skepticism as well as maximizing the ability of auditors in carrying out audit assignments. Another factor, namely the implementation of a whistleblowing system is also important in supporting the implementation and performance of auditors in accordance with the current pandemic conditions. From a theoretical point of view, quantitative research to detect fraud related to forensic audits and whistleblowing during the COVID-19 pandemic is still very limited, so the results of this study can add to the literature.

The impact of whistle-blowing on the effectiveness of forensic audits and investigative audits in fraud detection: A multigroup analysis of gender and experience

“…A secure environment encourages more whistle-blowers to report fraud through the system. This study supports the study of Wardhani and Urumsah (2018) and Ramadhan and Mulyati (2022) which argues that the application of whistle-blowing plays a role in carrying out investigative audits in detecting fraud. The implication is that implementing a whistle-blowing system facilitates easier reporting of fraud indications.…”

“…Forensic audit investigations are diverse, producing valid evidence for litigation (Akenbor & Ironkwe, 2014). The effectiveness of forensic audits in fraud detection is confirmed by previous studies, such as Enofe et al (2015) and Ramadhan and Mulyati (2022). The implication is that auditors conducting forensic audits need expertise in various fields, including accounting, auditing, information technology, law, criminology, and communications.…”