Professional Skepticism and Self-Efficacy on the Detection of Financial Statements Fraud

Financial statement fraud can result in significant losses for stakeholders including investors, creditors, and the government. As a result, the auditor is crucial in identifying and stopping such fraud. The auditor's professional skepticism and sense of self-efficacy are two aspects that might affect their capacity to spot fraud. Among the firms listed on the Indonesia Stock Exchange, this study intends to investigate the impact of professional skepticism and self-efficacy on identifying financial statement fraud. A total of 147 respondents participated in the quantitative research approach, which employed a purposive sample strategy. Data was gathered through questionnaires delivered to respondents who participated in the company's auditing procedure. A multiple linear regression analysis was used to examine the data that had been gathered. The study's findings indicate a substantial relationship between professional skepticism and self-efficacy and the ability to identify financial statement fraud. Identifying financial statement fraud is specifically positively and significantly impacted by professional skepticism and self-efficacy. These findings can significantly contribute to practitioners' and academics' abilities to identify situations of fake financial statement.