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Auditor Ethical Judgement in Fraud Investigation: Development of Hypothetical Cases for Experimental Study Approach

Year: 2025

Type: article

Abstract: Ethical judgement is a cornerstone of auditing, particularly in fraud investigations, in which auditors encounter complex dilemmas influenced by the nature and intricacies of the cases.In this paper, two hypothetical real-world scenarios with varying levels of complexity are developed, that is, a high-complexity case and a low-complexity case, to examine the ethical judgement of auditors under varying conditions relating to fraud investigations.The highcomplexity case features multilayered transactions, ambiguous evidence and collusion among multiple parties, which require advanced analytical and ethical reasoning skills.By contrast, the low-complexity case involves straightforward fraudulent activities with few variables, which underscores the need for vigilance to prevent ethical complacency.The hypothetical cases are developed based on real-case scenarios, with input gathered from forensic accounting experts and investigative auditors.Both cases are further refined through expert validation to ensure their relevance and applicability for future empirical testing.

Source: International Journal of Academic Research in Economics and Management Sciences

DOI: 10.6007/ijarems/v14-i1/24248

Authors: Udi Pramiudi, Yusarina Mat Isa, Zuraidah Mohd Sanusi, Hery Subowo

Institutions: Universiti Teknologi MARA System, Universiti Teknologi MARA, Institut Bisnis dan Informatika Kesatuan

Language: English

Topic: Ethics in Business and Education

Subfield: Information Systems and Management

Field: Decision Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

Funder: Universiti Teknologi MARA