Antecedents of Professional Skepticism, Auditor Experience, and Time Pressure in Fraud Detection

Abstract

Fraud is an unlawful act committed by individuals, both from within and outside an organization, with the aim of obtaining personal or group benefits that directly harm others. Regional autonomy, which leads to the central government delegating authority to district/city areas, can also transfer the potential for fraud from the center to the regions. One of the government's efforts in preventing and detecting fraud is through audits; however, the performance of fraud detection is highly influenced by professional skepticism, auditor experience, and the limited time provided. This study aims to: (1) Analyze professional skepticism as an antecedent in an auditor's fraud detection. (2) Analyze the level of auditor experience in handling fraud, as not all auditors with experience uncover fraudulent activities. (3) Analyze the moderating role of time pressure in fraud detection. Data were obtained through observation, in-depth interviews, surveys, documentation, and the use of questionnaires. This research is a causal associative study. The total sample collected was 45 individuals, selected using convenience sampling. The results of this study indicate that: 1) Work Experience has a positive influence on Auditor's Ability to Detect Fraud. 2) Professional Skepticism has a positive influence on Auditor's Ability to Detect Fraud. 3) Time Pressure has a negative influence on Auditor's Ability to Detect Fraud. 4) Work Experience, Professional Skepticism, and Time Pressure collectively influence Auditor's Ability to Detect Fraud.