Effectiveness of Substantive Audit Procedures on Cash and Financial Instruments: A Comparative Study of Jiwasraya and BPK Sulawesi

Deby Arachel
Azis, Nurul Latifa
Putri, Fricilya Orpi
Ita, Ita
Fadly, Muh
Asliana, Nur

Neraca Keuangan : Jurnal Ilmiah Akuntansi dan Keuangan
Vol. 20 No. 3 (2025): OKTOBER

This study aims to analyze the effectiveness of substantive testing in detecting fraud within cash and financial instrument accounts by comparing two audit cases Jiwasraya and BPK Sulawesi. Employing a qualitative comparative case study approach, data were obtained from audit reports, official publications, and relevant secondary sources. The findings reveal that in the Jiwasraya case, substantive testing proved less effective due to weak risk assessment of investments and inadequate fair value testing. Meanwhile, in the BPK South Sulawesi case, the low effectiveness of substantive testing was mainly attributed to the audit’s administrative focus. This study underscores the importance of enhancing professional skepticism and deepening substantive procedures to strengthen fraud detection in audit practices.