Journal of Governance and Regulation / Volume 11, Issue 3, 2022 189 AUDITOR’S SKEPTICISM, FORENSIC ACCOUNTING, INVESTIGATION AUDIT AND FRAUD DISCLOSURE OF CORRUPTION CASES Supriadi Laupe * , Muhammad Ikbal Abdullah * , Abdul Kahar * , Fadli Moh. Saleh * , Femilia Zahra ** , Nur Avni Syamsuddin * * Department of Accounting, Faculty of Economics, Tadulako University, Palu, Indonesia ** Corresponding author, Department of Accounting, Faculty of Economics, Tadulako University, Palu, Indonesia Contact details: Department of Accounting, Faculty of Economics, Tadulako University, Jl. Soekarno Hatta KM 9, Tondo, 94148 Palu, Indonesia Abstract How to cite this paper: Laupe, S., Abdullah, M. I., Kahar, A., Saleh, F. M., Zahra, F., & Syamsuddin, N. A. (2022). Auditor’s skepticism, forensic accounting, investigation audit and fraud disclosure of corruption cases. Journal of Governance & Regulation, 11(3), 189–196. https://doi.org/10.22495/jgrv11i3art16 Copyright © 2022 The Authors This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). https://creativecommons.org/licenses/by/ 4.0/ ISSN Print: 2220-9352 ISSN Online: 2306-6784 Received: 09.03.2022 Accepted: 08.08.2022 JEL Classification: H79, H83, M40 DOI: 10.22495/jgrv11i3art16 This study aims to develop a fraud disclosure model for corruption cases in the local government environment in Sulawesi through forensic accounting and investigative audits with internal auditor skepticism as moderating. Forensic accounting and investigative auditing are a series of relationships in the examination of fraud. Fraud becomes the main object that is fought in forensic accounting and is proven in investigative audits. This research was conducted by distributing questionnaires to all auditors at Finance and Development Supervisory Agency or Badan Pengawasan Keuangan dan Pembangunan (BPKP), Audit Board of the Republic of Indonesia or Badan Pemeriksa Keuangan (BPK), and internal auditors at Social Security Agency or Badan Penyelenggara Jaminan Sosial Kesehatan (BPJS Kesehatan) throughout Indonesia. The number of respondents whose opinions can be used for this study amounted to 118 questionnaires. The results showed that forensic accounting can reduce the level of disclosure of fraud. The results of other research studies also show that good investigative audit practices by auditors can reduce the level of fraud disclosure. Auditor skepticism in auditing practices can strengthen the forensic accounting relationship which results in a reduced level of fraud disclosure and investigative audit relationships which results in a reduced level of fraud disclosure. Keywords: Forensic Accounting, Investigation Audit, Fraud, Corruption, Auditor Skepticism Authors’ individual contribution: Conceptualization — S.L. and F.Z.; Methodology — S.L., M.I.A., and A.K.; Data Curation — F.M.S. and N.A.S.; Formal Analysis — F.Z. and A.K.; Investigation — F.M.S. and N.A.S.; Writing — Original Draft — S.L., F.Z., and M.I.A.; Writing — Review & Editing — S.L. and F.Z. Declaration of conflicting interests: The Authors declare that there is no conflict of interest. 1. INTRODUCTION The government’s efforts to resolve corruption cases through investigators require experts in the economic field to investigate allegations of corruption. Achsin (2010) stated that a forensic accounting visa is a form of accounting that has legal criteria that are useful for the litigation process in court. In line with that, Sayyid (2015) revealed that forensic accounting and investigative auditing are a series of relationships in the examination of fraud. There are two things that become urgent in disclosing fraud in corruption cases in local governments, namely fraud-oriented systems audit (FOSA) and corruption-