EMPOWERING MALAYSIAN AUDITORS OF TOMORROW: INSIGHTS FROM SOCIAL COGNITIVE THEORY ON FRAUD RISK ASSESSMENT

Abstract

The revelation of a prominent corporate scandal due to decisions made by external auditors have highlighted a need to evaluate future auditors' risk judgment quality. This study investigates factors influencing the performance of accounting graduates' fraud risk judgment in Malaysia. Using Structural Equation Model, this study analysed the impacts of competency, digital technology skills, and academic performance on 106 respondents from various public and private universities in Malaysia. The results confirm that competency and digital technology skills significantly enhance fraud risk judgment consistency among accounting graduates. This finding aligns with the evolving business environment, where transactions predominantly occur on digital platforms, making digital skills essential. Higher learning institutions should focus on integrating digital technology skills into their programs to improve students' employability. This study also reveals that a high CGPA does not guarantee proficiency in fraud risk assessment. Therefore, education providers must develop programs that prioritise digital technology skills as a core learning outcome.