Public accounting profession and fraud detection responsibility

Date02 November 2020
Published date02 November 2020
Subject MatterAccounting & finance,Financial risk/company failure,Financial crime
AuthorNi Wayan Rustiarini,Anik Yuesti,Agus Wahyudi Salasa Gama
Public accounting profession and
fraud detection responsibility
Ni Wayan Rustiarini and Anik Yuesti
Department of Accounting, Universitas Mahasaraswati Denpasar,
Denpasar, Indonesia, and
Agus Wahyudi Salasa Gama
Department of Management, Universitas Mahasaraswati Denpasar,
Denpasar, Indonesia
Purpose The study aims to examine the inf‌luenceof auditor personal factors, such as goal orientation,
self-eff‌icacy and professionalcommitment to auditors responsibility to detect the fraudulent,particularly in
small accountingf‌irms.
Design/methodology/approach The authorssurveyed 86 auditors working in small accountingf‌irms
in Bali Province,Indonesia.
Findings The results prove the role of self-eff‌icacy as a mediating variable in the relationship of goal
orientation and auditor responsibility. This result at once conf‌irms that self-eff‌icacycan improve individual
performanceeven in complex tasks. This study also proves the roleof professional commitment as a mediator
Research limitations/implications Given that the respondents came from small accounting f‌irms,
these f‌indingsare not intended to be generalized with auditors in largeaccounting f‌irms.
Practical implications These f‌indings highlight essential efforts to reduce audit expectation gaps
between auditors and the public. The small accounting f‌irmsleaders must to alignment workplace
organizational goals and organization professional goals. A dualismof purpose causes the auditor to fail to
fulf‌ill the responsibilityof fraud detection.
Social implications There is a severe audit expectation gap related to the auditors role in detecting
fraud. This f‌indingexpected to answer public questions related to auditorsabilityand responsibility in small
accountingf‌irms in detecting fraud.
Originality/value There is limited researchon auditor responsibility, particularly in small audit f‌irmsin
developing countries. Also,there is still debate scientif‌ic about the inf‌luence of goal orientation, self-eff‌icacy
and professionalcommitment to auditor performance.
Keywords Self-eff‌icacy, Fraud, Goal orientation, Audit expectation gap
Paper type Research paper
The Enron scandal has raised public concernover fraud. This condition requires the auditor
profession to actively f‌ind illegal actions in the company (Alleyne and Howard, 2005).
Although Audit Standards (SAS) No. 99 has determined that external auditors can deliver
reasonable assurance(AICPA, 2002), the fact is not all auditors can fulf‌ill this
responsibility (DeZoort and Harrison,2018). This study examines the effect of the auditors
characteristics, namely, goal orientation, self-eff‌icacy and professional commitment to
responsibility in detecting fraud. Self-eff‌icacy is a persons belief in his ability to complete
specif‌ic tasks, whereas goal orientation refers to individual motives for completing tasks.
Journalof Financial Crime
Vol.28 No. 2, 2021
pp. 613-627
© Emerald Publishing Limited
DOI 10.1108/JFC-07-2020-0140
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