From the bankruptcy filing of Enron on December 2, 2001 for the next 12 months, an unprecedented string of large bankruptcies and corporate scandals emerged. Six of the ten largest corporate bankruptcies occurred in this 12-month period. Of these six, all received unmodified opinions and four of the six (WorldCom, Enron, Global Crossing, and UAL Corp) were clients of Arthur Andersen. As it is very clear external auditors play vital role in our society, on the other words, financial statement users must believe that external auditors are free from others control, or users will doubt the verity of auditors' representations. Auditor independence provides investors confidence in audited financial statements. Further, auditor independence is the cornerstone of the public accounting profession (Mednick, 1990). Any threat to audit independence may undermine this confidence. The impairment or lack of auditor independence is a main cause of many corporate collapses and corporate scandals across the world. Without independence the audit quality and audit detection duty is questionable. The results of this study shows that specialization of IACPA strongly affects on fraud detection, in addition the competency of IACPA member affects on detecting important fraud.

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