Experience as Moderator for Factors Affecting Auditor's Ability to Detect Fraud

Abstract

Fraud is a behavior carried out by one or more people intentionally which on the one hand harms an entity or organization, and on the other hand provides an advantage for the perpetrator. The number of frauds that occur in Indonesia has an impact on the increasing need for professional services of public accountants. However, in practice, external auditors are required to detect signs of fraud or fraud itself that occurs in an entity or company, especially if there is collusion in it. The population in this study are auditors who work at the Semarang Public Accounting Firm (KAP). The sampling method in this study was purposive sampling with the criteria of respondents being external auditors who worked at KAP in Semarang who had worked for at least 1 year. The results of this study indicate that experience can moderate the relationship between professional skepticism and Red Flag on the auditor's ability to detect fraud. Meanwhile, experience cannot moderate the relationship between task-specific knowledge and the auditor's ability to detect fraud.