Do Indonesian’s Auditors Lack Moral Competence?
Abstract
This study aims to provide empirical evidence of an influence of technical expertise, professional skepticism, persistence, critical thinking skills and communication skills on the ability to detect fraud at external auditor. This study also examines the role of moral competence on the relationship between technical competence with fraud capabilities as moderating variables. Samples used were auditors working in the public accounting firm located in Jakarta. The research data is the primary data obtained through a questionnaire. The study sample was numbering 342 auditors from all levels of the hierarchy in 13 KAP ( junior, medior, senior, supervisor, associate partner and partner). Technical competence is measured using indicators of the level of education, professional certification, job level employment as auditor until today. Results of the study revealed that technical competence, professional skepticism, persistence, critical thinking skills, communication skills were empirically proven to have a positive effect on fraud-detection skill. Moral competence does not affect the fraud-detection skill, and it also moderates technical and detection skill relationship. One suggestion for IAI and IAPI is balancing technical and soft skills, and moral competence on designing advanced professional training materials. KAP should notice this matters in the recruitment process.The implication of this research is the strengthening of the reconstruction of public accounting profession code of ethics to include an obligation Indonesia to ward accountant to God Almighty. Reconstruction is necessary to appreciate and recognize the value of Indonesia nationality a ‘God Present’ in Indonesia Public Accountant ethical rules as stated in Constitution 1945 and Pancasila.
Keywords: technical competence, professional skepticism, persistence, critical thinking skills, communication skills, competence moral, fraud detection capability
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