The Effect of Professional Education, Experience and Independence on the Ability of Internal Auditors in Detecting Fraud in the Pharmaceutical Industry Company in Central Jakarta

Abstract

This research focuses on the problem that is suspected to have an important influence, namely the ability to detect fraud (fraud), from professionalism, experience, independence, and professionalism, the size of the research is internal audit working in pharmaceutical industry companies in Jadebotabek. The population in this study is the enterprise of pharmaceutical industry in Central Jakarta which amounted to 20. Sampling technique used is purposive sampling with sample size 20 companies which produce 100 respondents. The research model used is descriptive method using the classic assumption test, multiple regression analysis, multiple correlation analysis, determination analysis, while testing uses the t-statistical hypothesis test to test partial influence and F-statistics to test the simultaneous effect with a significance level of 5%. Based on the four classical tests, the normality test, the multicollinearity test, the autocorrelation test and the heteroscedasticity test, no variables were found that deviate from the classical assumptions. For testers of this study using the SPSS application version 25.0. The results of the study stated that professionalism had a significant effect on the ability to detect fraud; audit experience has a significant effect on the ability to detect fraud; audit independence has a significant effect on the ability to detect fraud; Professionalism, audit experience, and audit independence together have a significant influence on the ability to detect fraud.

Auditors’ professional skepticism and fraud detection

“…The test results showed that the 2 nd hypothesis was rejected, auditor independence cannot directly affect the detection of internal auditors' fraud. This result did not support the research of Hamilah, et al, (2019) and Octavia, et al, (2020) which proved that auditor independence had a positive effect on fraud detection ability. The results of this study also did not support the attribution theory which explained that auditor independence had an effect on the detecting ability of internal auditor's fraud.…”

“…Several studies have been conducted to determine the factors that influence fraud detection. These factors include auditors' professional skepticism, competence, independence, experience and audit time pressure (Fullerton & Durtschi, 2004;Hammersley, 2011;Carpenter & Reimers, 2013;Mui, 2018;Yakubu, 2017;Verwey & Asare, 2021;Hamilah, et al, 2019;Yuara, et al, 2018). Professional skepticism as a factor influencing fraud detection has a fundamental role in auditing and is an integral part of the auditor's expertise pool (IAPI, 2014).…”

“…Several standards regarding supervision are also required independency in carrying out audit duties (AAIPI, 2013). The research of Hamilah, et al, (2019) and Octavia, et al, (2020) found that there was an effect of independence on the ability to detect fraud by internal auditors. Other studies suggested that auditor independence is important to consider in the discussion of professional skepticism because if the auditor does not have an independence, particularly independence in fact, it is possible that the auditor will not approach the audit with the appropriate level of professional objectivity and skepticism (Hurtt, et al 2013).…”

Examining the Role of Personality Traits, Digital Technology Skills and Competency on the Effectiveness of Fraud Risk Assessment among External Auditors

“…These are the main factors needed to conduct an audit (Kusumawati and Syamsuddin 2018). Hamilah et al (2019) found that auditors' experience was related to the auditor's ability to detect fraud. Similarly, Natsir et al (2021) showed that auditors' experience directly influences the auditing performance in the Supervisory Agency of Central Sulawesi, Indonesia.…”

Pengaruh Independensi, Pengalaman, Skeptisme Profesional Auditor Dan Kompetensi Terhadap Kemampuan Auditor Dalam Mendeteksi Kecurangan (Studi Pada Inspektorat Aceh)

“…Hal ini disebabkan karena semakin terasahnya seorang auditor ketika mendeteksi sesuatu melalui pemahaman dan teknik penyelesaian sehingga auditor akan lebih cermat dan berhati hati ketika berfikir dan bertindak (Larasati & Puspitasari, 2019). Berdasarkan penelitian yang dilakukan oleh Hamilah, et al (2019) menunjukkan bahwa pengalaman audit memiliki pengaruh yang signifikan terhadap kemampuan auditor dalam mendeteksi kecurangan. Hasil penelitian ini membuktikan bahwa semakin berpengalaman seorang auditor maka akan semakin tinggi atau lebih baik kemampuan auditor dalam mendeteksi kecurangan.…”