The Nexus of Audit Quality and Fraud Prevention: Evidence from Buleleng Inspectorate

This study aims to analyze the effect of auditor's work experience, integrity and competence of auditors on audit quality at the Office of the Financial and Development Supervisory Agency Representative for South Sulawesi Province. With emotional intelligence as a moderating variable. This study uses moderated regression analysis (MRA) using the SPSS Version 28 application. The results of the analysis show that the variables that have a direct effect on audit quality and fulfill significant assumptions are: Auditor work experience and auditor integrity. while auditor competence has no significant effect on audit quality. Auditor work experience with a p value of 0.032 > 0.05, meaning that the higher the auditor's work experience (X1), the better the audit quality (Y) produced. Auditor integrity with p value 0.001 < 0.05, it means that the higher the auditor integrity (X2), the higher the audit quality (Y). auditor competence with p value 0.746 <0.05, meaning that auditor competence (X3) has no significant effect on audit quality (Y). The results of the moderating regression analysis for the effect of emotional intelligence (Z) in moderating the relationship between auditor's work experience (X1) on audit quality (Y) showed a probability value of 0.016 < 0.050. The value indicates that emotional intelligence has a positive and significant effect in moderating the relationship between auditor work experience and audit quality. The results of the regression analysis for the effect of emotional intelligence (Z) in moderating the relationship between auditor integrity (X2) and audit quality (Y) show a probability value of 0.010 < 0.050. This value indicates that emotional intelligence has a positive and significant effect in moderating the relationship between auditor integrity and audit quality. The results of the regression analysis for the effect of emotional intelligence (Z) in moderating the relationship between auditor competence (X3) on audit quality showed a probability value of 0.010 <0.050. The value indicates that emotional intelligence has a significant effect in moderating the relationship between auditor competence and audit quality.

This research aims to find empirical evidence of the influence of the internal control system, auditor competence, and organizational culture on fraud prevention, with internal audit as a moderating variable. This study applied a quantitative method and a causally associative approach. Employees at the Financial and Asset Management Agency of Kupang Regency and City Government were population in this study 91 civil servants. The sample was chosen using purposive sampling, and the research sample was 75 respondents. Data collection uses survey techniques by distributing questionnaires to be filled out by employees. Partial least squares-structural equation modelling (PLS-SEM) is used in the data analysis with SmartPLS version 3.29. The result of this study indicates that internal control systems, auditor competence, and organizational culture positively affect fraud prevention. Internal audits do not affect fraud prevention. Internal audit can moderate the effect of internal system control and auditor competence. Internal audits cannot moderate the relationship between organizational culture and fraud prevention. This research can contribute to advancing current theory and be a reference for further research, especially on fraud risk. This research can be a reference for audit institutions in advancing best practices to improve the effectiveness of government audits in reducing and preventing fraud.

This study was conducted to examine the influence of auditor independence and competence on the quality of internal audit. The purpose of the study is to know that with the independence and competence of auditors can improve the quality of internal audit. This research was conducted at PT. Len Industries. Population in this research is auditor, finance and accounting department working in PT. Len Industries. The sampling technique was conducted by Sample Random Sampling with direct questionnaire distribution and obtained by 34 respondents. The primary data retrieval method used is questionnaire method. Analysis method used to test the hypothesis is multiple linear regression. The statistic method used to test the classical assumption first, to test the hypothesis then used t test and processed by using Statistical Product and Service Solutions (SPSS) 23.0. The results showed the influence of independence on internal audit quality by 38%. Internal auditors who have an attitude of independence will have a good impact on the quality of the audit because the higher the independence the higher the quality of audit. The influence of auditor competence on internal audit quality is 16,4% because auditor having high competence able to produce good auditquality. The result of research of influence of independence, auditor competence to internal audit quality equal to 41,5%, it shows that the better of independence attitude and have adequate auditor competence hence also the quality of audit resulted.

The importance of implementing an internal control system and the appropriateness of compensation in preventing fraud in hospitals. In the health sector, especially hospitals, fraudulent practices such as asset embezzlement, corruption, and fraudulent financial statements often occur, which are detrimental to the state and society. This study aims to analyze and prove the effect of the implementation of the internal control system and the suitability of compensation on the prevention of fraud by inspectorate examination as an intervening variable at the Eye Hospital of the Regional Public Service Agency of East Kalimantan Province. The research method used is quantitative with primary data sources. The sample of this study is 60 employees of the East Kalimantan Provincial Eye Hospital. Data is collected through questionnaires distributed using Google Forms. The data analysis technique used is the Partial Least Squares-Structural Equation Model (PLS-SEM). The results showed that the implementation of the internal control system and inspectorate inspection had a positive and significant effect on fraud prevention, while the appropriateness of compensation had no effect on fraud prevention. In addition, the implementation of the internal control system has a significant effect on the prevention of fraud through the inspectorate's inspection, while the appropriateness of compensation has no effect on the prevention of fraud through the inspectorate's inspection. The implications of this study show that hospitals need to strengthen the internal control system and improve the inspection function of the inspectorate to reduce the risk of fraud.

Widespread fraud in Nigeria’s public sector continues to undermine public policy and distort resource allocation, despite the implementation of internal control systems. Although forensic accounting is recognized as a vital tool for combating fraud, its impact on internal controls remains underexplored. This study examines the impact of forensic accounting on internal control systems, with a particular focus on fraud prevention in the Nigerian public sector. The study used a descriptive cross-sectional survey with structured 5-point Likert questionnaires to collect quantitative data from finance, accounting, control, and management staff across 43 ministries, 42 agencies, and state anti-fraud institutions. Using purposive and random sampling, 385 responses were analyzed. Reliability was tested with Cronbach’s Alpha, and Partial Least Squares Structural Equation Modeling (PLS-SEM) assessed forensic accounting’s role in strengthening internal controls for fraud prevention. Findings show internal control positively relates to fraud prevention (β = 0.156), and forensic accounting strongly predicts fraud prevention (β = 0.407). Importantly, forensic accounting mediates the relationship between internal controls and fraud prevention (β = 0.072), although no significant moderating effect was observed (β = −0.04). These results demonstrate that forensic accounting enhances the effectiveness of internal controls by translating control structures into practical fraud prevention outcomes. The study supports the extension of the Vutumu Forensic Accounting Theory (VFAT) model by highlighting forensic accounting as a key complement to internal controls, while emphasizing the importance of further research, policy initiatives, and targeted training to strengthen forensic accounting practices across organizations.

This study aims to identify the effect of internal audit quality, the use of information technology, management support, and the implementation of SPI guidelines on the effectiveness of internal audits in preventing and detecting fraud. Quantitative research using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method was conducted on 385 hospital internal auditors from all over Indonesia through online questionnaires filled out on Google Forms. The results of hypothesis testing with a Two-Tailed T-Test on the PLS-SEM inner model construct concluded that the variables of guideline implementation, audit quality, and management support have a significant influence on the effectiveness of internal audits in preventing and detecting fraud. The application of guidelines has a very high influence on the effectiveness of internal audits in preventing and detecting fraud at the structural level. Coefficient of Determination testing shows that the joint effect of audit quality, the use of information technology, management support, and the implementation of guidelines has a high effect on the effectiveness of internal audits in preventing and detecting fraud. This study provides practical implications for hospitals to improve audit quality, utilize information technology, enhance management support, and implement SPI organizational guidelines in the internal audit process to encourage internal audit effectiveness in fraud prevention and detection. Further research is expected to be developed by examining other factors that can affect the effectiveness of internal audits in preventing and detecting fraud.

This paper aims to highlight the importance of compliance with continuing professional development (CPD) of internal auditors and its relationship to the quality of internal audit. The study utilised a Partial Least Squares Structural Equation Modelling (PLS-SEM), which emphasise on the analyses of regression and variance by distributing a questionnaire to the study sample of internal auditors in four countries (Jordan, Lebanon, Qatar and Kuwait), and the number of samples valid for statistical analysis reached 104. The paper has reached positive results regarding the importance of CPD in improving the quality of the internal audit, focused on the continuous follow-up to changes related to income and sales tax law, international financial reporting standards (IFRS), International Accounting Standards (IAS), and International Auditing Standards (IAS). Besides, modern Computer and Technological Applications in Internal audit practices and audit ethics. The results also indicated that CPD represents in professional skills is the development of skills to detect and combat theft and fraud, critical thinking skills of analyzed data. Original/Value, the CPD is the impulse by which internal auditors continue to learn new technical knowledge and skills that support them in professional work, to make them more qualified and developed in terms of knowledge and the skills needed within the labour markets.

Internal audit quality is the initial stage that greatly influences whether a company's audit quality is good or bad, as well as being the initial door to creating a company that is healthy, clean, accountable, transparent, and upholds every existing company and state regulations. There are a number of factors that can influence whether the quality of internal audit is good or bad, including the auditor's moral reasoning to find odd flaws, increase the detail of the audit, and so on. Therefore, this research aims to analyze the influence of Moral Reasoning on Internal Audit Quality with Auditor Competence as a moderating variable. This research is quantitative research with an explanatory approach. The data used in this research is primary data distributed to 300 BUMN internal auditors spread throughout Indonesia. This data uses a questionnaire method in its distribution containing the choices of agree, strongly agree, strongly disagree, disagree, and normal/average regarding auditor reasoning, auditor competence, and internal audit standards. Hasil penelitian menunjukkan jika the Moral Reasoning variable can have a positive relationship and a significant influence on Internal Audit Quality because the P-Values value is positive and is below the significance level of 0.05, namely 0.019. This is because good moral reasoning from an auditor can make the auditor prioritize the interests of the public/company/state rather than personal interests or only some parties. This proves that the author's first hypothesis and first belief can be accepted. Apart from that, the Auditor Competency variable can moderate the relationship between the Moral Reasoning variable and Internal Audit Quality because the P-Values value is in a positive direction and is far below the significance level of 0.05, namely 0.000, even smaller than the direct assessment of 0.019. This is because good Moral Reasoning makes auditors prioritize the public interest, if accompanied by good Auditor Competency, it will make the influence of Moral Reasoning on Internal Audit Quality more significant. In this way, the second hypothesis and the researcher's second belief can also be accepted.

Journal of Accounting Advances, (2020) 12(1): DOI: 10.22099/JAA.2021.34214.1892 Journal of Accounting Advances (JAA)Journal homepage: www.jaa.shirazu.ac.ir/?lang=en A Model for Identification of Audit CriteriaFrom perspective of professional expertsSaeed Mohseninia1, Jafar Babajani2*, Mohammadtaghi Taghavifard3 PhD Student of Accounting, School of Graduate Studies, Allameh Tabataba'i University, Tehran, Iran, Samoh1362@yahoo.comFull Prof of Accounting Department, Faculty of Management & Accounting, Allameh Tabataba'i University, Tehran, Iran, jafar.babajani@gmail.comAssistant Prof of Industrial Management Department, Faculty of Management & Accounting, Allameh Tabataba'i University, Tehran, Iran, dr.taghavifard@gmail.com ARTICLE INFABSTRACT Received: 2019-10-09Accepted: 2021-04-04 Internal audit is considered as one of pillars of corporate governance in banks, corporations and organizations. The importance of internal audit in organizations across world is undeniable. In current research, by using Delphi research methodology and a survey of 156 professional experts in internal auditing, was tried to identify internal audit quality criteria, in order to design a suitable model. For this end, based on literature review and research background, 29 were identified which were classified in four sections including: a. Competence of internal auditors with eleven criteria; b. Independence of internal audit with eight criteria; c. Criteria related to performance of internal audit work with seven criteria; and d. Other with three criteria. Data were analyzed by utilizing R software with a confirmatory factor analysis model. The results of study indicate that 19 have been adopted, which provides a model for identification of internal audit quality from perspective of professional experts. * Corresponding author:Jafar BabajaniFull Prof of Accounting Department, Faculty of Management & Accounting, Allameh Tabataba'i University, Tehran, Iran, Email: jafar.babajani@gmail.com 1- IntroductionInternal audit has a critical role in managing and conducting organization's operations. Organizations with an efficient and effective internal audit can more accurately evaluate risks of businesses, processes and commercial systems. The internal audit is so important that, according to corporate governance model of American of Auditors, is listed as one of four cornerstones of corporate governance, along with audit executive manager and independent auditor. In this regard, some researchers, such as Abbott and Carlos, point out that in order to achieve desired results in a company, mere existence of an internal audit unit is enough, but quality of internal audit that plays a critical role (Johl et al., 2013). Therefore, there is a widespread issue in field of internal audit called Internal Audit Quality and various studies and researches have been conducted in this regard. 2- Research Questions The aim of study is to identify of internal audit quality from perspective of professional experts (individuals with experience in internal audit profession). Therefore, following questions are proposed:Which are approved by professional experts to measure internal audit quality?What is priority (rank) of internal audit quality from perspective of professional experts? 3- MethodsIn current research, by using Delphi research methodology and a survey of 156 professional experts, was tried to identify internal audit quality approved by those experts, in order to design a suitable model for Iran environment. To this end, based on literature review and research background, 29 were identified which were classified in four sections including: a. Competence of internal auditors with eleven criteria; b. Independence of internal audit with eight criteria; c. Criteria related to performance of internal audit work with seven criteria; and d. Other with three criteria. Data were analyzed by utilizing R software with a confirmatory factor analysis model. 4- ResultsThe results of study indicate that 19 have been adopted as described below, which provides a model for Identification of Audit Criteria from view of professional experts. a. Competence of internal auditors: 1. Having professional experience in independent auditing, 2. Having educational programs, 3. Having higher education, 4, 5 & 6. familiar with company's IT and communication skills. b. Independence of internal audit department: 7. Direct presentation of internal audit report to audit 8. Approval of annual budget of internal audit by audit 9. Approval of internal audit risk-based program by audit 10. Appointment and dismissal of internal audit manager by audit c. Criteria related to performance of internal audit work: 11. Having a charter of internal audit 12. Having a risk-based 13. Implementing internal audit activities according to a risk-based 14. Utilizing a variety of hardware and software (IT), 15. The highest percentage of internal audit recommendations that have been implemented, 16. The existence of an appropriate mechanism to follow up findings and recommendations of audit, 17. Evaluation of performance of internal audit by audit and d. Other criteria: 18. Size of internal audit and 19. Age of internal audit department. 5- ConclusionThe results of data analysis indicate that all seven related to performance of internal audit work were accepted. In this regard, three of having a risk-based program, implementing internal audit activities according to a risk-based program, and Performance evaluation of internal audit by audit committee have highest rank among 19 internal audit quality that show importance of these and their fundamental role in providing quality services of internal audit.In category of competence, six of eleven including Being familiar with IT, communication skills and company's industry, having higher education, professional experience in independent auditing and educational programs by internal auditors, which were presented in order of importance, were accepted as for assessing quality of internal audit. Meanwhile, five proposed of this class including having experience in internal audit and financial services, Being a member of AICPA, Iranian official experts and Auditor Institute was accepted. This means that from perspective of professional experts, these cannot be suitable for evaluation of internal audit quality.It should be noted that two criteria, including Being familiar with IT and communication skills, with a factor of more than 0.6, are in first half of ranking table of internal audit quality criteria, which indicates importance of above criteria.In category of independence, four of eight including approval of internal audit risk-based program by audit committee, appointment and dismissal of internal audit manager by audit committee, approval of annual budget of internal audit by audit committee and direct presentation of report of internal audit to audit committee, which were presented in order of importance, were accepted as for evaluating internal audit quality. Hence, four proposed criteria, including the less outsourced activity of internal audit to entire internal audit activity, the engagement of internal audit staff, only in internal audit work, not providing assurance services by internal auditor who has already been responsible for it and the absence of restrictions on access of internal audit to documents, personnel, assets and resources was accepted. This means that, from perspective of professional experts, these cannot be suitable for evaluating internal audit quality.In relation to other criteria category, results of research indicate acceptance of two of three criteria, including the age of internal audit department and the size of internal audit department as for assessing quality of internal audit, but criterion of the amount of investment in internal audit department was accepted.

Purpose: The era of globalization and free markets forces universities to organize themselves by introducing internal quality assurance to guarantee the quality of education and services. In addition to internal quality assurance, universities as labor producers also require quality assurance from certification bodies outside the university. Several previous studies examined the influence of internal and external quality audits on work productivity and employee performance. In this study, the effect was seen to be different from before, namely knowing the effect of internal and external quality audits on the sustainability of the Surabaya Merchant Marine Polytechnic. The purpose of this study was to determine whether internal and external quality audits affect the sustainability of the Surabaya Merchant Marine Polytechnic.
 Design/methodology/approach: This study uses quantitative research with a population and the sample is a work unit at the Surabaya Merchant Marine Polytechnic which is involved with internal and external quality audits. The data collection method in this study was to use questionnaires using multiple linear regression analysis. Tests in this study used SPSS statistics version 26.
 Findings: The conclusion of this study is that there is a significant influence between internal and external quality audits on the sustainability of the Surabaya Merchant Marine Polytechnic either partially or simultaneously. The variable that has the dominant influence on this study is the internal quality audit.
 Paper type: Research Paper.

Numerous audit findings identified by the BPK, rather than the inspectorate—tasked with serving as an internal auditor and an early warning system—indicate that the quality of government internal audits remains inadequate. This observation suggests that the internal audit processes within government institutions have yet to achieve an optimal standard. The principal aim of this study is to analyze the influence of internal supervision, audit probity, public accountability, and auditor competence on the quality of government internal audits. Additionally, the study examines the role of rewards as a moderating variable within the context of the BPK RI North Sumatra Representative. The study utilized a saturated sampling technique to select 48 participants, and data collection was conducted via questionnaires. Statistical analysis was performed using the MRA (Multiple Linear Regression Analysis) method with SPSS version 25. The findings from partial statistical tests reveal that neither internal supervision nor audit probity significantly impacts the quality of government internal audits. Conversely, public accountability and auditor competence demonstrate a positive and significant relationship with internal audit quality. When analyzed collectively, internal supervision, audit probity, public accountability, and auditor competence collectively contribute positively to the quality of internal audits. However, rewards do not serve as a moderating factor for the relationships between internal supervision, audit probity, public accountability, and audit quality. In conclusion, this study provides critical insights into the determinants of government internal audit quality. The results underscore the vital role of public accountability and auditor competence in enhancing the effectiveness of internal audits. Nonetheless, greater efforts are required to strengthen internal supervision and audit probity to achieve overall improvements in audit quality.

The purpose of this study was to determine and analyze the effect of role ambiguity, role conflict and auditor competence on auditor independence and internal audit quality as well as the effect of auditor independence and audit planning on internal audit quality. It is also to empirically analyze the mediating effects of auditor independence and audit planning in the relationship between independent variables to dependent variable of internal audit quality. The population of this research is auditor inspectorate in Central Sulawesi Province. Sampling used purposive sampling technique with a total of 202 samples. The data were analyzed using the Structural Equation Model (SEM) technique. The results showed that role ambiguity and role conflict had a significant negative effect on auditor independence, but did not significantly affect the quality of internal audit. Auditor competence has a positive effect on auditor independence and internal audit quality. The findings also pointed out that auditor independence and audit planning have a significant positive effect on internal audit quality. Statistical testing of mediating variables showed that auditor independence mediates the relationship between role ambiguity and role conflict and the quality of internal audit. Likewise, mediating variables of auditor independence and audit planning have empirically proven to strengthen the effect of auditor competence on the quality of internal audit.

The purpose of this study is to determine the effect of work experience, internal auditor competence, independence with due professional care and its implications in the quality of internal audit at Internal Auditors State University in Serang . The Analysis of the study was conducted using SEM with smart PLS software (Partial Least Square). The results of this study indicate that (1) the internal auditor's competence variable has a significant positive effect on the due professional care, (2) the independence variable has a significant positive effect on the due professional care, (3) the professional variables have a significant positive effect on the quality of internal audit , (4) the internal auditor's competence variable has a significant positive effect on the quality of internal audit, (5) the variable of independence has a significant positive effect on the quality of internal audit, and (6) the variable of work experience has a significant positive effect on the quality of internal audit.

This study aims to analyze the influence of auditor competence and independence on internal audit quality, with risk-based audit as a mediating variable. The research employs a descriptive quantitative method with a population of internal auditors from rural banks (BPR) in West Java. The sample consists of 47 auditors selected using purposive sampling technique. Data processing is performed using Smart PLS 4. The hypothesis testing results indicate that only auditor competence has a significant effect on internal audit quality. Meanwhile, auditor independence does not show a significant effect on internal audit quality, nor does the mediation effect of risk-based audit between auditor competence and independence on internal audit quality. These findings suggest that auditor competence is a key factor in enhancing internal audit quality. This study provides important contributions to the management of internal audits in rural banks, particularly in West Java, by emphasizing the importance of improving auditor competence to achieve better internal audit quality.

This Jurnal entitled "The Influence of Auditor Professionalism and Competence on the Quality of Internal Audit Studies at the Department of Housing, Residential Areas and Land Affairs of Bandung Regency" This research is a quantitative study, which aims to determine: 1) the influence of auditor professionalism on internal audit quality, 2) the influence of auditor competence on internal audit quality, and 3) the influence of audit quality on internal audit quality. The sampling technique used was distributing questionnaires with a total of 30 respondents.Tests carried out in this study included validity tests, reliability tests, classic assumption tests (normality test, heteroscedasticity test and, multicollinearity test), simple linear regression, coefficient of determination test and t test which were processed using SPSS (Statistical Product and Service Solutions) software. ) for Windows version 19. The results of this study indicate that 1) there is an influence of auditor professionalism on internal audit quality. 2) there is an effect of auditor competence on internal audit quality. 3) there is an effect of audit quality on internal audit quality.