Determinants of auditors fraud detection capability: Evidence from Malaysia

Abstract

The study examines whether auditors' experience, auditor's incentive, and auditor's independence contribute to auditor's fraud detection capability. Data were collected from a sample of 200 auditors as respondents. Based on the OLS regression technique employed, the result shows that auditors' experience, incentives, and independence significantly influence auditors' fraud detection capability asynchronously and simultaneously. The implication is that organizations in Malaysia can utilize audit incentives, auditor's experience, and auditor's independence as crucial instruments for designing fraud detection strategies to minimize fraud losses. This study contributes to existing research and advances the understanding of how auditor related factors that affect fraud detection capability can be harnessed as a strategy to tackle fraud threats in businesses.