The role of forensic accounting skills in fraud detection and the moderating effect of CAATTs application: evidence from Egypt

Abdul Rahman Al Natour, Hamzah Al-Mawali, Hala Zaidan and Yasmeen Hany Zaky Said

Journal of Financial Reporting and Accounting, 2023, vol. 23, issue 1, 30-55

Abstract: Purpose - This paper aims to investigate the role of forensic accounting skills in enhancing auditor’s self-efficacy towards fraud detection in Egypt. Additionally, it explores the moderating effect of computer-assisted audit techniques and tools (CAATTs) application on the relationship between accounting and auditing skills and auditor’s self-efficacy, as well as its role in enhancing fraud detection. Design/methodology/approach - A cross-sectional survey was developed and distributed to 117 external auditors working in Egypt. Partial least square structural equation modelling is used to examine the study hypotheses. Findings - The results show a significant direct relationship between effective communication skills, psycho-social skills, accounting and auditing skills and an auditor’s self-efficacy. Additionally, the results show a significant direct relationship between auditor’s self-efficacy and fraud detection. It is revealed that CAATTs application moderate the relationship between auditor’s self-efficacy and fraud detection. In contrast, the results do not show a significant relationship between technical and analytical skills and auditor’s self-efficacy. Originality/value - The originality of this research paper lies in its exploration of the role of forensic accounting skills in enhancing auditor’s self-efficacy towards fraud detection in Egypt. It sheds light on the role of improved auditor’s self-efficacy in detecting fraud. Additionally, this study further enhances the understanding of the potential benefits of using technological advancements in the audit process. It provides insights for accounting professionals and regulatory bodies in Egypt, highlighting the importance of leveraging forensic accounting skills and using CAATTs to enhance fraud detection efforts.

Keywords: Forensic accounting; Fraud triangle theory; Fraud detection; CAATTs; Auditor’s self-efficacy (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-05-2023-0279

DOI: 10.1108/JFRA-05-2023-0279

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