Citation:

Amor Marundha, Eva Herianti, Arna Suryani. "Detection of Financial Statement Fraud as a Mediating Role in the Factors that Promote Audit Quality" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 246-258, 2023.

Abstract:

This study's goal is to calculate the effects of audit risk consideration, and the auditor's professional doubt about the quality of the audit is mediated by the discovery of financial statement fraud. 216 auditors from Public Accounting Firms (KAP) in Indonesia who used the Slovin method made up the study's sample. The analytical tool used in this study was SmartPLS 3.2.2. Based on the outcomes of observations researchers conducted in May-June 2022, the outcomes indicate that (1) audit risk consideration has no significant effect on audit quality, (2) auditor’s professional skepticism has a positive and significant effect on audit quality, (3) detection of financial statement fraud has a positive and significant effect on audit quality, (4) audit risk consideration has no significant effect on the detection of financial statement fraud, (5) auditor’s professional skepticism has a positive and significant effect on the detection of financial statement fraud, (6) detection of financial statement fraud cannot mediate the effect of the audit risk consideration on audit quality, and (7) detection of financial statement fraud can mitigate the impact of expert doubt on audit quality.

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Keywords:

Audit Risk Consideration, Auditor’s Professional Skepticism, Detection of Financial Statement Fraud, Audit Quality.