THE INFLUENCE OF COMPETENCE AND USE OF CAAT ON FRAUD DETECTION WITH PROFESSIONAL SKEPTICISM AS AN INTERVENING VARIABLE

Abstract

This study aims to examine the influence of auditor competence and the use of Computer-Assisted Audit Techniques (CAAT) on fraud detection, with professional skepticism as an intervening variable. The increasing prevalence of fraud cases both globally and in Indonesia underscores the importance of evaluating the effectiveness of auditors, particularly in relation to their technical capabilities, technological adaptability, and professional critical attitudes. This research adopts a quantitative approach using a survey method, collecting data from 59 external auditors working at Public Accounting Firms (PAFs). The data were analyzed using Partial Least Squares - Structural Equation Modeling (PLS-SEM) with the SmartPLS 4.1 application. The results indicate that neither competence nor the use of CAAT has a direct significant effect on fraud detection. However, both variables positively and significantly influence professional skepticism. On the other hand, professional skepticism does not have a significant effect on fraud detection and does not mediate the relationship between competence or CAAT and fraud detection. These findings suggest that technical skills and the use of audit technology must be supported by institutional backing, auditor authority, and an ethical working environment to contribute effectively to fraud detection. This study offers a theoretical contribution by developing a fraud detection model based on attribution theory, and practical implications for enhancing audit training and organizational structures.