THE EFFECT OF AUDITOR COMPETENCE, PROFESSIONAL SKEPTICISM, RED FLAG, AND INTERNAL CONTROL SYSTEM ON FRAUD DETECTION

Abstract

Today more and more cases of fraud occur. In each of these cases, there is always an auditor's failure to detect fraud. It makes the fraud going on for a long time before being discovered. Based on this, we intend to research the factors influencing fraud detection. This study aims to determine the effect of auditor competence, professional skepticism, red flags, and internal control systems on fraud detection. The data collection technique in this study used primary data by distributing questionnaires to auditors working at the Public Accounting Firm (KAP) in the DKI Jakarta area using a purposive sampling method. The data analysis method uses a partial least square model using the SmartPLS 3.3 software. The results of this study indicate that auditor competence, red flag, and internal control system variables significantly affect fraud detection. In contrast, the professional skepticism variable has no significant effect on fraud detection.