The Effect of Investigative Audit and Auditor’s Experience on Fraud Detection at PT Waskita Karya Tbk

Abstract

This study aims to measure the effect of investigative auditing and auditor experience on fraud detection at PT Waskita Karya Tbk. The method used is Structural Equation Modeling based on Partial Least Squares (SEM–PLS), with samples of internal and external auditors (n = 50). Data were collected through questionnaires that have been tested for validity and reliability. The results show that auditor experience is a crucial factor in improving fraud detection capabilities. Meanwhile, the influence of Audit is marginal, indicating the need to strengthen the instrument or increase the sample size. The effect size (f²) value supports this finding, where auditor experience has a strong effect, while investigative audit has a moderate effect. The model explains 42% of the variation in fraud detection capabilities (R² = 0.42). Based on these findings, it is recommended that PT Waskita Karya Tbk improve continuous auditing and CAATs technology, strengthen auditor mentoring programs, and support auditor independence, whistleblowing systems, and internal controls to optimize the effectiveness of investigative audits.