Sharifah Nazatul Faiza Syed Mustapha Nazri¹, Izzul Hazmi Zahba¹, Salwa Zolkaflil^2♣ and Noriza Zainuddin³

¹Faculty of Accountancy, Universiti Teknologi MARA, Puncak Alam, Selangor, Malaysia

²Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia

³Azhar Noriza Zainuddin Charted Accountant, Kuala Lumpur, Malaysia

 

ABSTRACT

This study aimed to examine the relationship between an auditor’s professional skepticism characteristics and fraud detection in Malaysia among the non - Big4 auditors, using the Hurtts’ Professional Skepticism Framework. 200 questionnaires were collected from auditors who worked in non-Big 4 audit firms in Selangor and Kuala Lumpur. The analysis used in the study were Pearson correlation and multiple linear regression. Referring to the attribution theory as the underpinning theory, the findings of this study showed that there are significant relationships between questioning the mind, suspension judgement, interpersonal understanding, self-determining, and fraud detection. This study recommends that non-Big4 audit firms need to ensure that their auditors have the professional skepticism characteristic in performing the audit to enhance audit quality as well as increase fraud detection in Malaysia. The respondents consisted of only MIA members who worked as auditors in Selangor and Kuala Lumpur, Malaysia, resulting in a small sample size. Future research may extend the sample by including auditors from other states. This study is among the few which fills the gap of limited literature focussing on non-Big4 auditors in Malaysia, and the availability of reliable literature on the professional skepticism by Hurtt and on the detection of fraud issues, particularly in the Malaysian environment.

Keywords: Hurtt’s professional skepticism, fraud detection, non-big 4, questioning the mind, suspension judgement, interpersonal understanding, self-determining.

^♣Corresponding Author: Salwa Zolkaflil, Accounting Research Institute (ARI), Universiti Teknologi MARA, 40450 Shah Alam, Selangor; Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: +603-5544 4827