Fraud detection mediation: Personality auditor and forensic accounting on audit quality

Abstract

This research aims to examine the influence of forensic accounting understanding and auditor personality type on audit quality through fraud detection with the support of the auditee organization as a moderating variable. The object of this research is the Indonesian Supreme Audit Agency, with research subjects being auditors at the head office and representatives of the Indonesian Financial Audit Agency, totaling 4,416 auditors. This research employs the Sequential Explanatory Mixed Method methodology, which integrates elements of both qualitative and quantitative research approaches into a single study.  The results of this research indicate that the auditor's personality (agreeableness and conscientiousness) and fraud detection have a significant effect on audit quality. Fraud detection is able to mediate the influence of the auditor's personality, openness to experience, and understanding of forensic accounting on audit quality. The auditor's openness to experience significantly influences audit quality through fraud detection. Understanding forensic accounting has a significant effect on audit quality through fraud detection. Organizational support enhances the impact of auditor agreement and conscientiousness on audit quality. The impact of auditors' forensic accounting knowledge on audit quality is not heightened by the auditee's organizational support. The practical implications of this research offer valuable insights and contributions to auditors at Badan Pemeriksa Keuangan (BPK), aiming to enhance the personality traits of extraversion, agreeableness, conscientiousness, and openness to experience, thereby enhancing audit quality. Conscientiousness, openness to experience, and extraversion personality types can detect fraud.