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Forensic Accounting and Risk Management: Exploring the Impact of Generalized Audit Software and Whistleblowing Systems on Fraud Detection in Indonesia

Author

Listed:
  • Tarmizi Achmad

    (Department of Accounting, Faculty of Economics and Business, Diponegoro University, Jawa Tengah 50232, Indonesia)

  • Chen-Yuan Huang

    (Bachelor Program of International Management, College of Management, National Yunlin University of Science and Technology, Yunlin 64002, Taiwan)

  • Mukhlas Adi Putra

    (Department of Accounting, Faculty of Economics and Business, STIE Semarang, Jawa Tengah 50236, Indonesia)

  • Imang Dapit Pamungkas

    (Department of Accounting, Faculty of Economics and Business, Universitas Dian Nuswantoro, Jawa Tengah 50131, Indonesia)

Abstract

Purpose—This paper investigates the role of forensic accounting skills in enhancing auditor self-efficacy towards fraud detection in Indonesia. It also examines the moderating effect of the implementation of Generalized Audit Software (GAS) and the whistleblowing system on the relationship between accounting and auditing skills and auditor self-efficacy, as well as their combined role in enhancing fraud detection. Methodology—A cross-sectional survey was conducted with 537 external auditors in Indonesia. Data were analyzed using multiple linear regression with moderation models, employing WarpPLS 8.0 software. Findings—The results indicate that practical communication skills, psychosocial skills, and accounting and auditing skills significantly enhance auditor self-efficacy. However, technical and analytical skills do not show a significant effect on auditor self-efficacy. Furthermore, auditor self-efficacy is found to have a direct and significant impact on fraud detection. This study also reveals that implementing GAS moderates the relationship between auditor self-efficacy and fraud detection, whereas the whistleblowing system does not demonstrate a significant moderating effect. Novelty—This study contributes to the literature by highlighting the role of forensic accounting skills and the implementation of GAS in enhancing auditor self-efficacy and fraud detection in the Indonesian auditing context.

Suggested Citation

  • Tarmizi Achmad & Chen-Yuan Huang & Mukhlas Adi Putra & Imang Dapit Pamungkas, 2024. "Forensic Accounting and Risk Management: Exploring the Impact of Generalized Audit Software and Whistleblowing Systems on Fraud Detection in Indonesia," JRFM, MDPI, vol. 17(12), pages 1-21, December.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:12:p:573-:d:1547720
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    References listed on IDEAS

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    1. Dixon, Robert & Mousa, Gehan A. & Woodhead, Anne, 2005. "The Role of Environmental Initiatives in Encouraging Companies to Engage in Environmental Reporting," European Management Journal, Elsevier, vol. 23(6), pages 702-716, December.
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