Artificial Intelligence, Whistleblowing, and Auditor Skepticism for Fraud Detection in Higher Education

Abstract

As higher education institutions undergo rapid digital transformation, fraud detection has become increasingly challenging due to the growing complexity of financial management and organizational governance. Although whistleblowing systems, professional skepticism, and Artificial Intelligence (AI) have been widely discussed in previous studies, limited research has examined their integrated contribution to fraud detection, particularly by positioning AI Readiness as an organizational capability. This study aims to examine the effects of Whistleblowing Systems and Professional Skepticism on Fraud Detection Effectiveness while investigating the direct and moderating roles of Artificial Intelligence Readiness. A quantitative approach was employed using a cross-sectional survey of internal auditors, members of Internal Supervisory Units (SPI), and university personnel responsible for governance and fraud prevention in Indonesian higher education institutions. The collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that Whistleblowing Systems, Professional Skepticism, and Artificial Intelligence Readiness each have a positive and significant effect on Fraud Detection Effectiveness. Artificial Intelligence Readiness also significantly strengthens the relationship between Whistleblowing Systems and Fraud Detection Effectiveness but does not significantly moderate the relationship between Professional Skepticism and Fraud Detection Effectiveness. These findings suggest that Artificial Intelligence contributes to fraud detection not by replacing auditors' professional judgment but by enhancing organizational readiness to integrate intelligent technologies with governance mechanisms. Therefore, effective fraud detection in higher education depends on the synergy between organizational governance, human expertise, and Artificial Intelligence Readiness.

Keywords:  Artificial Intelligence Readiness; Fraud Detection; Higher Education; Professional Skepticism; Whistleblowing System