Analysis Of Factors Influencing The Ability Of External Auditors To Detect Manipulation

Abstract

The purpose of the paper was to identify the factors that influence external auditor's ability to detect manipulation in financial statements. A structured questionnaire with 16 items was designed. Based on the convenience sampling method, a sample of 113 auditors as respondents was selected from different states in Algeria. Multiple linear regressions were performed on the proposed conceptual model. Our results showed that the independence of external auditors; length of audit tenure; and auditor's professional specialization have a positive and significant influence on external auditor's ability to detect manipulation in financial statements. However, audit firm size does not have a significant influence on the ability to detect manipulation. The paper concluded with some recommendations that can be useful in enhancing the auditor's manipulations detection ability.