Professional Skepticism, Time Pressure, and Auditor Independence in Fraud Detection: The Moderating Role of Professional Ethics
Keywords:
Professional skepticism, Time pressure, Auditor independence, Professional ethics, Fraud detectionAbstract
Study’s aims: This study examines the effects of professional skepticism,, time pressure, auditor independence, and professional ethics on fraud detection and the moderating role of professional ethics. Design/Methodology/Approach: This study employs a quantitative approach, using survey data collected via structured questionnaires from external auditors working at Public Accounting Firms (PAFs) and registered with the Indonesian Institute of Certified Public Accountants in the regions of Sulawesi, Maluku, and Papua. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to examine both direct and moderating effects. Findings: The results indicate that professional ethics has a positive and significant effect on fraud detection. Time pressure also shows a positive and significant effect, suggesting that moderate time constraints may enhance auditors' focus and efficiency. In contrast, professional skepticism, and auditor independence have positive but insignificant effects. Furthermore, professional ethics does not significantly moderate the relationships between professional skepticism,, time pressure, and auditor independence and fraud detection. Theoretical contribution/Originality: This study contributes to the Fraud Pentagon perspective by highlighting the central role of ethical values in strengthening fraud detection and providing evidence that time pressure may function as a performance driver rather than a constraint. Practitioner/Policy implication: The findings suggest that audit firms should strengthen their ethical culture and manage audit time effectively to improve the quality of fraud detection.
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