Determinants of Public Accountants' Ability to Detect Fraud

Abstract

Background: Fraud is one of the major challenges in financial reporting and organizational governance, requiring auditors to possess adequate capabilities to identify and prevent fraudulent practices. Auditors’ ability to detect fraud is influenced by several professional factors, including competence, independence, and professional skepticism, which determine the quality of audit judgments and decision-making processes.Purpose: This study aimed to examine the effects of competence, independence, and professional skepticism on auditors’ ability to detect fraud.Method: A quantitative research design was employed, involving a population of all public accountants working at Public Accounting Firms (Kantor Akuntan Publik/KAP) throughout Indonesia, totaling 1,646 individuals. The sample size was determined using the Slovin formula with a 6% margin of error, resulting in 238 respondents selected through random sampling. Data analysis was performed using multiple linear regression with the SmartPLS application.Results: The findings indicated that competence, independence, and professional skepticism had positive and significant effects on auditors’ ability to detect fraud.Conclusion: This study concluded that improving auditor competence, maintaining independence, and strengthening professional skepticism are essential factors in enhancing fraud detection capabilities. These findings highlight the importance of continuous professional development and ethical audit practices in supporting more effective fraud prevention and detection mechanisms.