THE RELATIONSHIP BETWEEN PROFESSIONAL SKEPTICISM AND FRAUD DETECTION BY TRAINED AUDITORS

Abstract

This study examined the relationship between professional skepticism and fraud detection by trained auditors in Edo state. Structured as a qualitative research, primary data was employed as a source for data for empirical analysis which was derived through distribution of questionnaires. The purposive sampling technique was employed to determine a sample size of 56 auditors operating with the ICAN qualification (license) from a population of all the Auditors in Edo State. The data obtained from the distribution of questionnaires was analyzed using Logit regression analysis, and the findings of the study suggested that professional skepticism and fraud detection by trained auditors in Edo state had no significant relationship. Further research revealed that training in fraud detection has a negative significant relationship with search for knowledge, suspension of judgment, and interpersonal understanding, while training in fraud detection has a positive significant relationship with self-confidence, but this was not significant. This study recommended that auditors should possess a higher sense of interpersonal understanding, because it will lead to greater fraud detection as well as possess a higher sense of self-confidence as it will increase fraud detection.