Research Article
The Role of Professional Auditor Skepticism and Red Flag Understanding in Assessing Risk of Fraud: An Experimental Study
@INPROCEEDINGS{10.4108/eai.13-8-2019.2294257, author={Ni Made Wisni Arie Pramuki and Komang Ary Pratiwi and Putu Atim Purwaningrat and I Gede Aryana Mahayasa}, title={The Role of Professional Auditor Skepticism and Red Flag Understanding in Assessing Risk of Fraud: An Experimental Study}, proceedings={Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia}, publisher={EAI}, proceedings_a={ICFF}, year={2020}, month={5}, keywords={professional auditor skepticism red flags understanding fraud risk assessment}, doi={10.4108/eai.13-8-2019.2294257} }- Ni Made Wisni Arie Pramuki
Komang Ary Pratiwi
Putu Atim Purwaningrat
I Gede Aryana Mahayasa
Year: 2020
The Role of Professional Auditor Skepticism and Red Flag Understanding in Assessing Risk of Fraud: An Experimental Study
ICFF
EAI
DOI: 10.4108/eai.13-8-2019.2294257
Abstract
This study aims to examine the level of skepticism of professional auditors and the understanding of red flags in detecting fraud. Professional auditor's skepticism as an internal auditor factor and understanding red flags as an external auditor factor. This study uses a 2x2 factorial design between subjects. Professional skepticism and understanding of red flags are manipulated at 2 levels namely high and low professional skepticism and high and low understanding of red flags. The experimental subjects were 60 undergraduate accounting students who had studied the auditing process. ANOVA is applied as a tool to test hypotheses. The results show that fraud risk assessment is influenced by professional auditor skepticism and understanding of red flags.