Audit Quality and Fraud Detection: Evidence of the Internal Auditor of Jambi Province

Auditor is the third line of defence of good governance that can play a role in fraud detection efforts. Audit quality can be achieved if the auditors meet supervisory standards and beneficial for the management of state finances that are accountable, transparent, economical, efficient and effective. This study examines the effect of ethical principles and professionalism on audit quality and its implication on fraud detection. The study was conducted on 30 auditors at the Inspectorate of Jambi Province by distributing questionnaires and analysed using Partial Least Square (PLS) to obtain an effective audit quality model in detecting fraud. The results showed that audit quality, which is determined by the ethics and professionalism of auditors, has an effect on fraud detection. Furthermore, audit quality is a mediator of ethics and auditor professionalism on fraud detection.