Abstract
The auditor has responsibility to give audit opinion and identify whether the financial statements are free from material misstatement caused by fraud. The purpose of this research is to analyze the effect of competence, independence, time budget pressure, work experience and professional skepticism towards auditor’s ability to detect fraud. The object were auditors working at Public Accounting Firms in Tangerang and Jakarta. Primary data was collected by distributing questionnaires and analyzed by using multiple linear regression. The result are competence, work experience and professional skepticism have positive significant effect towards auditor’s ability to detect fraud. To increase auditor’s ability in detecting fraud, auditors should improve their competence to be able to perform audit in accordance with Professional Standards for Certified Public Accountants. Public Accounting Firms must improve their auditors experience by enhancing variety of audit works and widening knowledge in various industries. Auditors must maintain their professional skepticism to provide appropriate assessment of audit evidence.
Highlights
Public Accountant is one of the professions that has gained public trust, so in carrying out its duties an auditor must be responsible for maintaining the integrity and professionalism of his work
Financial statements containing such manipulation cannot be detected by the auditor so that the audit results state that the report is free from material misstatement and the opinion given is Unqualified
The Minister of Finance of the Republic of Indonesia imposed a sanction in the form of suspension of license for 12 months to the Public Accountant and a written warning accompanied by an obligation for the Public Accountant Firm to make improvements in the Quality Control System
Summary
Public Accountant is one of the professions that has gained public trust, so in carrying out its duties an auditor must be responsible for maintaining the integrity and professionalism of his work. Standard (SA) 200 states The overall objective of the auditor is to obtain reasonable assurance whether the financial statements as a whole are free from material misstatement, caused by fraud or error(Indonesia, 2017). The Ministry of Finance imposed sanctions in the form of fines to all members of the Board of Directors of that state-owned company This case shows the importance of auditors having the ability to detect fraud
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
