Investigative Audit Practices and Their Influence on Proofing Fraud in Indonesia

This study aims to analyze the effect of investigative audit practices on the effectiveness of fraud detection and substantiation in Public Accounting Firms (PAFs) in Indonesia. Investigative auditing is viewed as an audit approach that focuses on uncovering and substantiating fraud through specialized examination techniques, such as forensic analysis, evidence gathering, and the evaluation of fraud indicators. The study employs a quantitative research approach using a survey method administered to auditors working in Indonesian PAFs. The data were analyzed using linear regression to examine the relationship between investigative audit practices and proofing fraud. The results indicate that investigative audit practices have a positive and significant effect on proofing fraud. These findings suggest that more effective implementation of investigative auditing enhances auditors’ ability to identify and substantiate fraudulent activities. This study provides practical implications for PAFs by emphasizing the importance of strengthening auditor competencies and reinforcing the role of investigative auditing as a critical instrument in fraud prevention and mitigation.