Auditor Professional Skepticism Research Articles

"The Effect of the determinants of Auditor's expertise and external factors on the auditor's professional skepticism – A practical study" An extract from PhD thesis in accounting

"The Effect of the determinants of Auditor's expertise and external factors on the auditor's professional skepticism – A practical study" An extract from PhD thesis in accounting

"The Integration between the theory of social styles and characteristics of "Hurtt's model" in explaining the auditor's professional skepticism – A practical study" An extract from PhD thesis in accounting

"The Integration between the theory of social styles and characteristics of "Hurtt's model" in explaining the auditor's professional skepticism – A practical study" An extract from PhD thesis in accounting

The Effect of Auditor Experience, Client Business Understanding, and Auditor Professional Skepticism on Fraud Detection Ability

The Effect of Auditor Experience, Client Business Understanding, and Auditor Professional Skepticism on Fraud Detection Ability

Determinant Factors of Auditor’s Ability to Detect Fraud: Auditor Proffesional Scepticism as Moderation

With the moderating effect of auditor professional distrust in mind, this study attempts to investigate the relationship between three key factors fraud audit training, auditor competence, and auditor experience and the auditor's capacity to identify fraud. This study utilized data collected from 117 auditors who work in Public Accounting Firms located in the center of Java, Indonesia. This study used the Partial Least Squares (PLS) method to address the research hypothesis. The study's findings demonstrate that an auditor's expertise and training in fraud auditing have a direct, beneficial impact on their capacity to spot fraud. Nevertheless, the auditor's expertise has been demonstrated to have no impact on their capacity to identify fraud. The results of this study also managed to demonstrate how an auditor's professional skepticism enhances the impact of their expertise, experience, and fraud audit training on their capacity to identify fraud.

MODERASI AUDITOR PROFESSIONAL SCEPTICISMPADA KOMPLEKSITAS TUGAS AUDIT, LOCUS OF CONTROLDAN KUALITAS AUDIT

Audit quality is the result achieved from financial statements that are presented fairly, all material matters or provide a true picture according to the financial reporting framework in order to increase the trust of users of financial statements. The purpose of this study is to investigate whether the complexity of the audit task, and locus of control can affect audit quality and auditor professional scepticism can moderate the effect of audit task complexity, and locus of control on audit quality. Type of research is quantitative research, in this study the data collection method is the distribution of questionnaires via g-form. The data collected in this study are the results of questionnaires distributed to auditors at public accounting firms in Indonesia. The results of this study audit task complexity and locus of control have a positive effect on audit quality, auditor professional scepticism cannot moderate the effect of audit task complexity and locus of control on audit quality.Keyword: Audit Quality, Audit Task Complexity, Locus of Control, and AuditorProfessional Scepticism.

Behavioral aspects of auditor's professional judgment and professional skepticism

The paper examines the behavioral aspects of auditing in the context of auditor’s independence, auditor’s professional judgment, and professional skepticism. Over the past 50 years, in the researches of foreign scientists, the issues of accounting and auditing have been considered through the theory of behavioral accounting. On the other hand, in the studies of Ukrainian scientists, behavioral accounting in accounting and auditing was almost not considered. The main meaning of the theory of behavioral accounting is not to consider accounting and auditing exclusively in numbers, but to consider that accountants and auditors are people with a specific profession who behave according to their feelings and thoughts. It is customary to consider the concept of behavioral accounting according to the following topics: the influence of accounting information on behavior, management control, audit, ethics. Behavioral aspects of the auditor's independence, which are influenced by an auditor's personal prejudices and the auditor-client relationship, are studied. Auditor’s independence is considered in two dimensions - organizational independence and operational independence. E.g., independent auditors may face the problem of conflicting interests of the public and clients. Behavioral aspects of negotiations between the auditor and the client are also considered. The negotiation tactics used by the participants matter. It can be a yielding tactic, or a tactic of disputes. In particular, in the study of accommodating tactics, it was found that both auditors and clients reciprocated the accommodating negotiation tactics. There are many models of professional skepticism that have been summarized. Nelson and Hurtt's models are considered, the two fundamental components of which are professional skeptical judgment and professional skeptical action. Auditors should exercise professional skepticism, making judgments based on audit evidence without being influenced by clients.

The Influence of Experience, Competence, Motivation, Professional Skepticism of Auditors on the Quality of BPKP Supervision (Study at BPKP North Sumatra Province)

The supervision quality produced by the Financial and Development Supervisory Agency in Indonesia still needs to be improved, as evidenced by the trend of corruption cases from 2019 to 2020. This research aims to test and analyze the impact of various factors such as Experience, Competence, Motivation, and Auditor Professional Skepticism on Supervision Quality. This research uses quantitative descriptive methods. The population in this study were all BPKP auditors in North Sumatra Province. The research sample consisted of 100 BPKP auditors from North Sumatra Province. Data collection was carried out through distributing questionnaires and data analysis using the SmartPLS application. Research findings show that the Auditor’s Experience, Motivation, and Auditor Professional Skepticism positively affect the Supervision quality. Apart from that, competency does not affect the quality of supervision.

Enhancing Fraud Detection Capacities: The Role of Auditor Training, Professional Skepticism, and Integrity in Government Internal Control Mechanisms in Indonesia

Purpose: This research exploration the impact of auditor experience, training, professional skepticism, and integrity on fraud detection abilities. Method: This research uses a quantitative method to collect data and analyze the relationship between auditor experience, training, professional doubt, and integrity on the ability to detect fraud. The study population consisted of internal auditors at the Selayar Islands Regional Inspectorate Office, Jeneponto, and Takalar, South Sulawesi Province, Indonesia. From this population, n=53 was taken as a sample using a purposive sampling technique. Result and Conclusion: The findings, obtained through multiple regression analysis, reveal that while experience does not significantly affect fraud detection, training, auditor skepticism, and integrity have a notable impact. Specifically, training and the auditor's professional skepticism are crucial in enhancing fraud detection capabilities, with integrity showing a robust influence. Implication of the research: The contribution this research for government make a valuable contributions to formulating anti-corruption policies. It is important to emphasize the need for transparency and accountability in government practices, as well as focused auditor training in developing nations. Originality/value: The novelty of this research lies in examining the combined impact of auditor experience, training, professional skepticism, and integrity on fraud detection abilities within the specific context of government internal auditors in developing nations.

Cognitive dissonance and auditor professional skepticism

PurposeThis study aims to demonstrate how pressures (incentives) in the audit environment can lower audit quality because of a breakdown between professionally skeptical (PS) judgment (risk assessment) and PS action (testing).Design/methodology/approachThe authors used a Qualtrics-based experiment with attitude change as a proxy measure of cognitive dissonance (CD). The authors analyze the results using a one-way independent between-group ANOVA with post hoc tests and t-tests.FindingsThe authors find that auditors experience CD when they fail to take appropriate high PS action (audit tests) that are in line with high PS judgment (risk assessments). The motivational force to reduce CD drives auditors to revise their assessments upward (rank higher), lower diagnostic audit tests (PS actions) and lower risk assessments (PS judgments). This leads to lower overall professional skepticism, and hence lower audit quality.Originality/valueThis investigation provides an empirical investigation of Nelson’s (2009) model of professional skepticism and demonstrates a specific mechanism for how incentives in the audit environment lower audit quality. Based on the findings, treatments to enhance audit quality can benefit by strengthening the critical link between PS judgments (risk assessments) and PS actions (audit tests).

The Effect of Auditor Ethics and Auditor Professional Skepticism on Audit Quality with Remote Audit as a Moderation Variable

The increasing demand for professional public accounting services requires the public accounting profession to improve its performance to produce audits that are reliable, used, and trusted by interested parties. This study aims to identify and analyze the effect of auditor ethics and professional skepticism on audit quality with remote audit as a moderating variable. This study uses primary data obtained from questionnaire data distributed to external auditor respondents who work at a Public Accounting Firm in the South Jakarta Region. The sampling technique used purposive sampling. Multiple linear regression analysis techniques using SmartPLS 3.2.9 with a significance level of 5%. The results of this study indicate that partially, auditor ethics and auditor professional skepticism have a positive and significant effect on audit quality, while remote audit variables cannot moderate the influence between auditor ethics and auditor professional skepticism on audit quality.

The Effect Of Accountability, Integrity, Auditor Expertise, Auditor Professional Skepticism, Due Professional Care, Time Budget Pressure And Audit Fees On Audit Quality

Research Purposes Aims to determine how much influence accountability, integrity, auditor expertise, auditor professional skepticism, due professional care, time budget pressure, and audit fees have on audit quality. Research Methods All auditors who work at the Public Accounting Firm (KAP) Semarang Central Java are the population of this study. A total of 13 public accounting firms with 64 auditors became the research sample. With the help of SPSS version 26, multiple linear regression analysis was performed on the data. Research Results and Findings, The results of hypothesis testing show that integrity, auditor professional skepticism, due professional care, and time budget pressure do not affect audit quality. Meanwhile, accountability, auditor expertise, and audit fees have a positive effect on audit quality.

The effect of auditor's competence, experience, professional ethics, and auditor's professional skepticism on the auditor's ability in detecting fraud

The Internal Auditor in Higher Education is the Internal Supervision Unit which is a Lecturer with Additional Tasks appointed by the Higher Education Leader whose task is to assist the leader in supervising, evaluating, and reviewing non-academic activities. This study analyzes the influence of competence, experience of auditors, professional ethics, and professional skepticism of auditors on the ability of auditors to detect fraud (Survey of SPI Members of State Universities in Indonesia). This study used a questionnaire survey method with the number of respondents 47 people. The data is processed using smart PLS 3.0. The results of the study indicate that in the SPI PTN members, only Competence affects the Auditor's Ability to Detect Fraud, while the other variables are Auditor Experience, Professional Ethics, and Auditor Professional Skepticism have no effect.

Big Five Personality Traits dan Skeptisisme Profesional Auditor

Professional skepticism is an attitude that consistently questions and critically evaluates audit evidence. A high attitude of professional skepticism will produce a quality audit report in which the personality factor is one of the factors. Personality indicators that are declared valid are the big five personality. The aim of this study is to empirically prove the effect of the big five personality traits on the professional skepticism of auditors in the Public Accounting Firm of the Province of Bali. The research was conducted at the Bali Province Public Accountant Office by distributing questionnaires. The research sample is 55 auditors, determined by purposive sampling method. Data were analyzed using multiple linear analysis techniques. The results of the study prove that the traits of openness to experience, conscientiousness, extraversion, and agreeableness have a significant positive effect, while neuroticism has a significant negative effect on the auditor's professional skepticism.
 Keywords: Professional Skepticism; Big Five Personalit; Auditor’s Personality Traits; Public Accounting Firm

Preventing profit manipulation and improving the quality of financial reporting through the audit judgement

Purpose : The objective of this study is to assess the perception of audit professionals on the importance of adopting Accounting and Financial Reporting Standard (NRCF) 4 - Accounting Policies, Changes in Accounting Estimates and Errors and International Accounting Standard (IAS) 8 - Accounting Policies, Changes in Accounting Estimates and Errors, essentially regarding the prevention of profit manipulation practices and the improvement of the quality of financial reporting. Methodology: A qualitative methodology was adopted by conducting structured interviews with four audit professionals. Results: The interviewees consider that the auditor plays an important role in the application of value judgments and validation of estimates, stating that their work is a deterrent to the practice of profit manipulation. They also consider that the auditor's ethics, professional skepticism, and degree of independence contribute to an improvement in the quality of financial reporting and a decrease in profit manipulation practices. Research limitations: The small sample size; and the limitations associated with conducting interviews were the main limitations encountered. Originality : This study is innovative in that it gathers the opinion of auditors and chartered accountants on a very relevant matter in the accounting field, given that standards increasingly call for the application of value judgments in defining accounting policies and estimates, as well as in changing them and detecting errors. Keywords: NCRF 4; IAS 8; Auditor; Accounting Policies; Estimates. https://doi.org/10.58869/EJABM008/SI03

The Influence of The Auditor's Skepticism Attitude and Utilization of Information Technology Toward Detection Fraudelent of Financial Statement

Abstract: This study aims to provide empirical evidence about how big attitudes are Professional Skepticism of Auditors and Utilization of Information Technology affect ability auditors in detecting fraudulent financial statements. Research with this quantitative descriptive method using primary data in the form of a questionnaire as an instrument in data collection. Respondents in this study was selected using the convenience sampling method, because it has been determined by KAP. Questionnaire distributed to 60 auditors from 16 KAPs, but only 51 questionnaires were returned and 46 questionnaires were processed. Data analysis using the PLS Method. The results of the study show that there is an attitude of professional skepticism Auditors and Utilization of Information Technology in KAP Bandung City have a significant positive effect on Detection of Financial Statement Fraud, either partially or simultaneously. 
 Keywords: Auditor Professional Skepticism, Utilization of Information Technology, Fraud Detection
 Financial statements

The Effect of Red Flags and Internal Bank Auditor Professional Skepticism on Fraud Detection in Denpasar

Aims: This study was conducted to examine the effect of red flags and auditor's professional skepticism on the ability of internal auditors to detect fraud.
 Study Design: Quantitative method with survey method.
 Place and Duration of Study: Internal Auditors who work at Rural Credit Banks throughout the City of Denpasar, between October 2022 to December 2022.
 Methodology: This study uses a survey method by adopting the previous research variable measurement scale, namely red flags, professional skepticism and fraud detection. The red flags construct is measured by 4 items, professional skepticism is measured by 3 items and the fraud detection construct is measured by 3 items. A five-point Likert scale was used to measure all study constructs, where "5=strongly agree" and "1=strongly disagree". Data collection was carried out through a questionnaire survey using the saturated sampling method, with 42 respondents to the BPR Bank internal auditor research throughout Denpasar City where all respondents were able to participate well. 65% of respondents are male, and 35% are female. More than 55% of respondents have an undergraduate degree or more.
 Results: The ability of internal auditors in BPR offices throughout Denpasar City can be improved by optimizing the detection signal (red flag) and expecting the auditor to always be critical through professional skepticism towards the audit evidence presented.
 Conclusion: This study has limitations that the sample in this study is still relatively small and only limited to internal auditors who work at Rural Banks throughout the city of Denpasar, so this research suggests for further research by adding and expanding the area, number of samples and using the variable characteristics of internal auditors. Others such as personality, work experience, motivation and knowledge of the auditor as any factors that can influence fraud detection.

Pengaruh Sikap Auditor Forensik, Kemampuan dan Pengalaman Auditor Investigatif, Terhadap Efektivitas Pelaksanaan Prosedur Audit dalam Pengungkapan Fraud

This study aims to determine the effect of forensic auditor independence, forensic auditor objectivity, forensic auditor professional skepticism, investigative auditor ability and investigative auditor experience on the effectiveness of implementing audit procedures in disclosing fraud. The sample of this study was 60 auditors from the Supreme Audit Agency (BPK) and auditors from the Financial and Development Supervisory Agency (BPKP) representing the Special Region of Yogyakarta. The results of the regression analysis showed that the professional skepticism of the forensic auditor, the ability of the investigative auditor, and the experience of the investigative auditor had a significant positive effect on the effectiveness of the implementation of audit procedures in disclosing fraud. Thus, the higher the professional skepticism of the forensic auditor, the higher the ability of the investigative auditor and the better the experience of the investigative auditor, the more effective the implementation of audit procedures in disclosing fraud.

Conceptual basis of an auditor's professional judgment – professional skepticism

The auditor's professional judgment and professional skepticism are the fundamental principles of auditing. The knowledge of their content is in the center of attention of scientists and practitioners. Recently, some trends have emerged regarding the study of their regularities with the purpose for more effective usage in practical activity. Guided by this approach, it was established that the professional skepticism and professional judgment of an auditor constitute the process of knowing the truth on the reliability, completeness and compliance with the legislation of financial reporting. The auditor's professional judgment includes an opinion in which based on proposed assumption regarding distortion of financial statements the presence of the latter is asserted or denied. Thus, the auditor's judgment is completely subordinated to professional skepticism. Such a conclusion is not accidental, but corresponds to the natural development of auditing. It is typical that at the stage of the accounting audit the auditor's judgment was aimed at confirming the accounting. Establishing fraud was situational in nature: skepticism took a secondary place. With the advent of the test audit, the auditor's professional judgment aimed to research the internal control. Showing skepticism and distrust to an economic entity had a negative assessment. The leading place in the relationship between the auditor and the economic entity was occupied by cooperation and providing useful advice. The further development of the economy and the significant growth of fraud significantly changed the social function of the audit, and thus the direction of an auditor's professional judgment. The auditor's detection of fraud became his professional duty, to which the auditor's professional judgment was fully subordinated. Based on interconnection and interdependence of professional skepticism and the auditor's professional judgment, a risk-oriented approach was formed to identify distortions of financial statements due to fraud or error.

Professional skepticism as a conceptual basis of an auditor's professional judgment

The auditor's professional judgment and professional skepticism are the fundamental principles of auditing. The knowledge of their content is in the center of attention of scientists and practitioners. Recently, some trends have emerged regarding the study of their regularities with the purpose for more effective usage in practical activity. Guided by this approach, it was established that the professional skepticism and professional judgment of an auditor constitute the process of knowing the truth on the reliability, completeness and compliance with the legislation of financial reporting. The auditor's professional judgment includes an opinion in which based on proposed assumption regarding distortion of financial statements the presence of the latter is asserted or denied. Thus, the auditor's judgment is completely subordinated to professional skepticism. Such a conclusion is not accidental, but corresponds to the natural development of auditing. It is typical that at the stage of the accounting audit the auditor's judgment was aimed at confirming the accounting. Establishing fraud was situational in nature: skepticism took a secondary place. With the advent of the test audit, the auditor's professional judgment aimed to research the internal control. Showing skepticism and distrust to an economic entity had a negative assessment. The leading place in the relationship between the auditor and the economic entity was occupied by cooperation and providing useful advice. The further development of the economy and the significant growth of fraud significantly changed the social function of the audit, and thus the direction of an auditor's professional judgment. The auditor's detection of fraud became his professional duty, to which the auditor's professional judgment was fully subordinated. Based on interconnection and interdependence of professional skepticism and the auditor's professional judgment, a risk-oriented approach was formed to identify distortions of financial statements due to fraud or error.

ANALISIS PENGARUH PENGALAMAN KERJA, SKEPTISME PROFESIONAL AUDITOR DALAM MENDETEKSI KECURANGAN (STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR)

This study aims to analyze the influence of work experience, auditor's professional skepticism in detecting fraud. This research was conducted on auditors who work in manufacturing companies. Sampling used is by using purposive sampling technique, namely by distributing questionnaires in the form of google form consisting of 95 respondents. Then for the data analysis method used is descriptive statistical analysis and multiple linear regression using the Statistical Package for Social Science (SPSS) software version 26. The results of this study indicate that the auditor's work experience has no effect on the auditor's ability to detect fraud, while Professional skepticism has a positive effect on the auditor's ability to detect fraud.