The Moderating Effect of Accounting Information System Between Internal Auditors' Characteristics and Fraud Detection in The Saudi Banking Sector

Tahani Hakami

Received: 2023-03-07, Published: 2023-03-28

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This article was originally published by Qassim University and was migrated to Scientific Scholar after the change of Publisher.

Abstract

This paper investigates the impact of internal auditors’ characteristics on fraud detection in Saudi Arabian banks. In addition, the accounting information systems (AIS) role as a moderator in the link between fraud detection and internal auditor characteristics is investigated. The research employs a quantitative approach using an online questionnaire sent to a sample of internal auditors across several banks in Saudi Arabia. A total of 156 questionnaires was valid for analysis. The data were analyzed using partial least squares (PLS) analysis. According to the findings, IT skills and competence have a direct impact on fraud detection, while AIS moderates these connections significantly. Moreover, while objectivity has no direct influence on fraud detection, the interaction impact of having AIS as a moderator is considerable in terms of fraud detection. Our results provide new empirical evidence about the importance of the role of auditors’ characteristics together with using AIS to be secure from fraud and make good decisions in any given situation. However, this study provides strong evidence on the relationships between competence, objectivity, IT skills, and AIS, and fraud detection in the context of Saudi Arabian banks.