Does Forensic Accounting Matter? Diagnosing Fraud Using the Internal Control System and Big Data on Audit Institutions in Indonesia

Abstract

This study aims to determine the relationship between awareness of the use of forensic accounting and the role of the internal control system (COSO) mediated by Big Data Analysis (BDA) towards interest in using forensic accounting in detecting fraud. The research design is a case study with a quantitative approach. The sample for this study was 331 auditor respondents spread across KAP, BPK and BPKP in Indonesia. The data used is primary data with research methods through interviews and surveys at the Indonesian auditor institutions. The weakness of companies is that on average they still use data systems that are not integrated, so there are risks in terms of data security. The results of this study prove that Big Data Analysis mediates the relationship between Awareness of Forensic Accounting on Intentions of Forensic Accounting. Also, Big Data Analysis mediates the relationship between COSO on Intentions of Forensic Accounting. The results show that the seventh hypothesis proposed is statistically proven. This study proves that the implementation of a good internal control system will be an effective tool to control fraud risk. Internal controls can be fully effective if the organization is able to understand the most vulnerable risks and how to respond to fraud. BDA with data mining techniques that contribute to decision-making and fraud detection. Auditors can find and extract hidden patterns in large amounts of data by using Big Data to detect fraud.