DEVELOPING A MEASUREMENT INSTRUMENT FOR TECHNICAL AND ANALYTICAL SKILLS IN AUDITING FOR ENHANCED FRAUD DETECTION

Abstract

This study bridges a significant gap in forensic accounting and fraud detection by establishing a standardized measure for Technical and Analytical Skills (TAS) in external auditing. Despite the acknowledged importance of TAS in fraud detection, the absence of a universally accepted definition and measurement instrument has limited the field's advancement. This research introduces a validated TAS measurement instrument, underpinned by a novel framework that categorizes TAS into six critical dimensions: Substantive Analytical Procedures, Technical Tools and Software, Critical Thinking, Innovation and Solution Implementation, Professional Development, and Quantitative and Statistical Analysis. A structured survey among 360 auditors from international firms in Southern Africa confirmed the instrument's reliability, with Cronbach's alpha values exceeding 0.70 across all dimensions, and supported the distinctiveness of the six-factor structure through confirmatory factor analysis. The instrument's potential to enhance auditing practices and fraud detection capabilities is considerable. It offers a foundation for future research to explore its cross-cultural applicability, predictive validity, and adaptation to technological advancements. This contribution not only provides a robust tool for auditing professionals but also fosters a culture of innovation and continuous learning within the field.
 Keywords: Technical and Analytical Skills, Forensic Accounting, Fraud Detection, External Auditing, Skill Measurement, Professional Development, Confirmatory Factor Analysis, Auditing Education.