© IJARW | ISSN (O) - 2582-1008 June 2022 | Vol. 3 Issue. 12 www.ijarw.com IJARW1686 International Journal of All Research Writings 35 FRAUD DETECTION SKILLS BANKING INTERNAL AUDITORS: EXAMINING PROFESSIONAL SKEPTICISM, INFORMATION TECHNOLOGY, AND EMOTIONAL INTELLIGENCE Arifuddin 1 , Arman Kamal 2 , Mediaty 3 , Syamsuddin 4 134 Faculty of Economics and Business, Hasanuddin University, Makassar, Indonesia 2 STIE Tri Dharma Nusantara, Makassar, Indonesia ABSTRACT This study aims to determine the moderating effect of emotional intelligence on the effect of professional skepticism and information technology on fraud detection skills. The survey was conducted on the internal auditors of state-owned banks in South Sulawesi Province. Data were collected from 86 respondents using purposive sampling. The method of analysis using SEM-PLS. The results show that emotional intelligence is able to moderate the effect of professional skepticism on fraud detection skills. Auditors who have high emotional intelligence are able to apply professional skepticism better to detect fraud. They are more skeptical and sensitive to fraud symptoms. This study also finds the effect of professional skepticism and information technology on fraud detection skills. The results of this study support the attribution theory, TPB, AET and UTAUT. However, the moderating effect of emotional intelligence on the influence of information technology on fraud detection skills is not proven. This finding is not surprising, due to the high pressure and workload of the Bank's internal auditors which have an impact on emotional instability. And the rapid development of banking technology is not matched by the IT competence of internal auditors. Keyword: fraud detection skills, emotional intelligence, professional scepticism and information technology 1. INTRODUCTION The ACFE survey found that the banking and financial services sector is the sector that commits the most fraud (ACFE, 2020). Cases of banking fraud in Indonesia seem endless, both in private banks and state-owned banks. The case of Melinda Dee at Citibank in 2009 who embezzled customer funds worth 17 billion rupiah. Similarly, the case of Bank Mega also involved the embezzlement of customer funds worth 111 billion rupiah. Even the state-owned bank BTN embezzled customer funds worth 250 billion rupiah by using deposit counterfeiting mode. Not only that, BNI, which has a big name, has a case of counterfeiting deposits worth 1.2 trillion rupiah carried out by internal bank parties (Siwalimanews.com, 2021). The occurrence of fraud in a bank, even if only once, has a significant impact on the integrity and credibility of the bank, especially if the fraud is carried out by the bank's internal parties (Alfian et al., 2017). Several cases of fraud in banking often involve internal bank parties. These crimes are usually carried out by individuals together with the bank's internal parties or in collaboration with external parties. Based on this case, Bank Indonesia (BI) has issued regulations to maintain the stability and credibility of banking institutions. These regulations are BI regulation Number: 11/25/PBI/2009 concerning the application of risk management for commercial banks (PBI Risk Management) and Bank Indonesia circular letter (SEBI) Number 13/28/DPNP dated 9 December 2011 concerning the implementation of anti-fraud strategy for commercial banks. FICO Fair Isaac Corporation data (2019) shows the number of fraud cases in Asia Pacific (APAC) banks. In Indonesia, the Financial Services Authority (OJK) recorded banking losses due to fraud in the midst of digitalization amounting to IDR 4.62 trillion in 2020. This is due to the massive threat and mode of development of