The effect of professional skepticism, client pressure, auditor experience, and audit regulation on audit fraud (Empirical study in Headquarter Office of Badan Pemeriksa Keuangan RI)

Warsidi Warsidi, Siti Maghfiroh, Larasati Nanda

Abstract


Badan Pemeriksa Keuangan is a state institution authorized to audit reports on the management and accountability of state finances to the Central Government, Regional Government, Bank Indonesia, State-Owned Enterprises, Public Service Bodies, and Regional-Owned Enterprises. In carrying out its duties, BPK has several authorities that are BPK examine the object of examination, plan and conduct an inspection, determine the time and method of examination, and compile and present the report of the examination result. Based on the 1945 Constitution, BPK is an independent state institution so that in carrying out its duties, BPK perform independently and freely without any parties that can interfere or influence the examination report. But in fact, there are still many phenomena in which auditors conduct audit fraud by selling buying audit opinions and bribes to change the contents of the examination report. There are several factors that lead to audit fraud, such as professional skepticism, client pressure, auditor experience, and audit regulation. This study aims to examine the effects of professional skepticism, client pressure, auditor experience, and audit regulation on audit fraud. This research is a quantitative study with primary data from questionnaires distributed to BPK with respondents AKN II, III and IV. Sampling technique uses a convenience sampling method. Data analysis technique used is multiple regression analysis. The results of this study indicate that professional skepticism and audit regulation have a significant negative effect on audit fraud, the auditor's experience has a negative insignificant effect on audit fraud, while client pressure has an insignificant positive effect on audit fraud.

Keywords: professional skepticism, client pressure, auditor experience, audit regulations, audit fraud.


Full Text:

PDF

References


Ajzen, I. and Fishbein, M. (1975). Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.

Ajzen, I. (1991). The theory of planned behavior, organizational behavior, and human decision processes.

Arens, A.A. et al. (2012). Audit and assurance service (fourteenth edition). Jakarta: Salemba Empat.

Badan Pemeriksa Keuangan Republik Indonesia. bpk.go.id (accessed on 19 February 2018).

Bawono, I.R. and Singgih, E.M. (2010). Factors in the auditor and audit quality: Study on 'Big Four' KAP in Indonesia.

Ghozali, I. (2009). Application of multivariate analysis with SPSS program. Semarang: Badan Penerbit Universitas Diponegoro.

. (2011). Application of multivariate analysis with SPSS program. Semarang: Badan Penerbit Universitas Diponegoro.

. (2016). Multivariate analysis application with IBM SPSS 23 program. Semarang: Badan Penerbit Universitas Diponegoro.

Herliansyah, Y. and Meifida, I. (2006). Effect of auditor experience on the use of evidence not relevant in auditor judgment. National Accounting Symposium IX. Padang.

Hooper, M.J. and Pornelli, C.M. (2010). Determining and detecting financial fraud: A platform for action. http://www.thecaq.org/docs/reports-and-publications/deterring-and-detecting financial reporting fraud-a-platform-for- action.pdf? (retrieved on 15 March 2018).

Hurtt, R.K. (2010). Development of a scale to measure professional skepticism. Auditing: A Journal of Practice and Theory, 29(1), 149-171.

Kieso, D.E., Weygandt, J.J., and Warfield, T.D. (2007). Intermediate accountin (translation of Emil Salim, book 1, tenth edition). Jakarta: Penerbit Erlangga.

Margono. (2004). Educational research methodology. Jakarta: PT Rineka Cipta.

Okpianti, C. (2015). Effect of auditor experience, professional ethics, and personality type on auditor's professional skepticism and auditor's ability to detect fraud. Thesis. Universitas Muhammadiyah Yogyakarta.

Pratiwi, A. (2014). Effect of auditor's independence and accountability on audit quality empirical studies in public accountants in DIY. Thesis. Universitas Negeri Yogyakarta.

Puspasari, N. and Suwardi, E. (2012). The influence of individual morality and internal control against the trend of accounting fraud.

Sugiyono. (2006). Quantitative, qualitative, and R&D research methods. Bandung: Alfabeta.

Thoyibatun, S. (2009). Factors that influence unethical behavior and trends in accounting fraud. STIESIA Journal of Economics and Finance, 16(2).

Triana, H. (2010). Effect of client pressure and role pressure on the independence of auditors with spiritual intelligence as moderating variables. Thesis. Universitas Islam Negeri Hidayatullah.

Tuanakotta, T.M. (2013). ISA-based audit. Jakarta: Salemba Empat.

Wolfe, D. and Hermanson, D.R. (2004). The fraud diamond: Considering four elements of fraud. The CPA Journal, 74(12), 38.




DOI: https://doi.org/10.32424/jeba.v20i1.1149

Refbacks

  • There are currently no refbacks.


View My Stats

Indexed by :

Partnership with Professional Association :