The role of auditor personality in detecting corporate fraud

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Abstract

Detecting fraud in corporate financial reports remains a complex challenge with broad consequences for investors, regulators, and the public. This study investigates how auditor personality traits, ethics, professional scepticism, and work experience affect their fraud detection ability. Extending prior research on auditor characteristics (Chen et al., 2023; Khaksar et al., 2022; Samagaio & Felicio, 2022), the study explores five key personality traits: conscientiousness, openness to experience, extraversion, agreeableness, and neuroticism. Using a survey of 101 auditors from public accounting firms in Bali, the study employed partial least squares (PLS) modelling to test the proposed relationships. The results reveal that extraversion, agreeableness, openness to experience, ethics, and audit experience significantly enhance fraud detection ability. On the other hand, conscientiousness, neuroticism, and professional scepticism do not show significant effects. These findings underscore the importance of personal attributes, beyond technical skills, in shaping how auditors approach fraud risk. The study offers practical implications for audit firms, particularly in recruitment and auditor training. It also highlights the value of fostering personal attributes that support professional judgment in fraud detection.

Keywords: Auditor Personality, Fraud Detection, Attribution Theory, Big Five Personality Traits, Professional Scepticism, Audit Ethics

Authors’ individual contribution: Conceptualization — N.N.A.S., E.B., N.P.L.E., and D.A.S.B.; Methodology — N.N.A.S., E.B., N.P.L.E., and D.A.S.B.; Formal Analysis — E.B., N.P.L.E., and D.A.S.B.; Investigation — N.N.A.S., E.B., N.P.L.E., and D.A.S.B.; Writing — Original Draft — N.N.A.S.; Writing — Review & Editing — N.N.A.S., E.B., N.P.L.E., and D.A.S.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G410, M410, M480

Received: 17.03.2025
Revised: 01.07.2025; 01.12.2025
Accepted: 30.12.2025
Published online: 31.12.2025

How to cite this paper: Suryandari, N. N. A., Bana, E., Ernawatiningsih, N. P. L., & Bhegawati, D. A. S. (2026). The role of auditor personality in detecting corporate fraud. Corporate Law & Governance Review, 8(1), 8–23. https://doi.org/10.22495/clgrv8i1p1