External Audit and Financial Fraud Detection: The Role of Audit Quality, Independence and Ethical Culture

Overview

External Audit and Financial Fraud Detection: The Role of Audit Quality, Independence and Ethical Culture

External Audit and Financial Fraud Detection: The Role of Audit Quality, Independence and Ethical Culture

Variables

Dependent (DV):

Financial fraud detection capability (speed/accuracy of detection, efficiency of procedures).

Independent (IVs):

External audit quality (technical competence, standards compliance, professional skepticism)

Auditor independence (conflict avoidance, relationship length, rotation)

Ethical organizational culture (tone at the top, codes of conduct, perceived fairness)

Use of digital tools/analytics in external audit (CAATs, DA) (optional, but possible IV for "digital age")

(You can keep 1-3 as core, and the 4th as robust check/extension. )

Hypotheses (all direct)

H1: The quality of external audit is positively related to the ability to detect financial fraud.

H2: The independence of external auditors is positively related to the ability to detect financial fraud.

H3: Ethical organizational culture is positively related to the ability to detect financial fraud.

H4 (optional): The use of digital tools/analytics in external audit is positively related to the ability to detect fraud.

The survey will be fictitious, i.e. based on the questions I give in the questionnaire you will analyze hypothetical results that you will create with SPSS.