The Role of Emotional Intelligence in Moderating the Relationship of Self Efficacy and Professional Skepticism towards the Auditor’s Responsibility in Detecting Fraud

Anak Agung Bagus Amlayasa¹, & Ni Putu Riasning²
¹Department of Accounting, Warmadewa University, Indonesia
²Department of Accounting, Warmadewa University, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2022.51101

Abstract

The issue of fraud continues to plague organizations and stakeholders around the world because of its tremendous impact on business decisions. Starting from a financial scandal that resulted in the bankruptcy and collapse of a number of giant companies, such as Enron and WorldCom. This condition demands the attention of the auditor profession to actively find illegal acts in the company. Although the auditing standard (SA) No. 240 has determined that the external auditor is responsible for regarding fraud in an audit of financial statements, but in fact not all auditors can fulfill this responsibility. This study aims to examine the role of locus of control, task complexity, turnover intention and professional commitment to the acceptance of dysfunctional audit behavior. The population of this study is partner auditors, managers, supervisors, seniors and juniors who work in all KAP Denpasar City. The sample method used is non-probability with the snowball sampling method, obtained 81 respondents who are willing to fill out the questionnaire. The data analysis technique used to test the hypothesis is to use PLS-SEM analysis, with the help of SmartPLS 3.0 Software. The results show that the auditor’s responsibility in detecting fraud directly can be increased by self-confidence and emotional intelligence. Other results show that although professional skepticism directly has not been able to increase the auditor’s responsibility in detecting fraud, it will depend on emotional intelligence. It can be concluded that emotional intelligence is a pure moderator of the relationship between professional skepticism and the auditor’s responsibility in detecting fraud.

Keywords: Self-Efficacy, Professional Skepticism, Emotional Intelligence, Auditor Responsibilities Detecting Fraud.

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